Prudent & Frugal
Hope St. attributes its success to prudent decision making, frugal mindset, cost savings initiatives, and lean methodologies to help landlords and investors save hundreds of thousands dollars in unwanted property management expenses.
Seasoned & Experienced
We have managed over $650,000,000 in property value, $350,000,000 in portfolio loans including construction and bridge loans. We have managed over 700,000 square feet of prime Southern California real estate, assets that we have managed include:
- Single Family Residences
- Luxury Residential Homes - Custom Spec
- Duplex
- Triplex
- Quadruplex
- Apartments (Retail, Mixed Used)
- Mixed Used
- Industrial
- Land
- Warehouse
- Retail Assets
- Residential Loans
- Multi Family Loans
- Construction & Bridge Loans
- Construction Projects
Ethics & Integrity Matter
At Hope St. we pride ourselves with being ethical and having integrity with all of our business dealings. We will never co-mingle money, we start our trusts accounts with $200 dollars and that's it; we will never add or add or remove cash for any reason. We will never deposit, withdrawal or make any movement of cash without ownership approval. Our background is in banking and are bankers at heart. We will never misrepresent you. We maintain ECOA, Fair Housing and related housing laws when managing and leasing assets.
Ethical, Moral, and Legal Management
Did you know that most apartment buildings- about 50% of buildings aren't capturing market rents! That means that one out of two properties in your portfolio aren't within market rents. This means that 1 out of 2 properties you own are an opportunity for us to increase your ROI, therefore rents need to be increased.
The question is how much should you raise in comparison to the market and nearby trends. We can help increase the value of the asset by applying proper ethical practices that increase the rents but in an ethical, moral, and legal method that improves your bottom line while keeping or maintaining the law.
Risk Management
Managing apartment buildings should be profitable, stable, and predictable on how they perform. The ideal properties can sometimes turn to legal nightmares. When operations run smooth, everything works. Everyone collects, managers make their profit, and everything is fine. Owners are happy, but when problems arise and property managers can't think critically on resolving inefficiencies, can't apply effective strategies behind increasing rents and leasing to new tenants, this is where the real issues and fall outs begin. Let's say the operation misses "x", or "y", or cuts corners in the leasing phase or tenant search phase, staff quits, usually it's because of poor practices and or poor company culture that cloud decision makers.
When businesses are ran this way, buildings often have poor results. Very similar to businesses, if a business doesn't manage its cost, taxes, its managers- the net profit will dwindle away. Most property managers run their businesses with inefficiencies- but at Hope St. We create client value- value from processes that are broken, we fix the process and pass the value on to you.
We have a strict and prudent way that's not the sexiest, but it's prudent, consistent, validated, proven, and it's efficient, and it works very well.
Old School Meets New School. Advanced Software Solutions.
We make sure that our risk management is not only up to date, but that we use the latest dashboards models to visualize valuation methods, forecasting, and key performance indicators in finance for you to visually see how your property is doing before our management, and what you can expect when we take over. We offer results. Book a complimentary consultation now.
Vertical Integration
But when we set out for becoming a We realized that owners faced several pain points, one of those was heavily relying on banking relationships for apartment lending. We noticed that rates were usually higher than traditional Fannie Mae, and Freddie Mac rates, and this is because these lenders use their balance sheet to fund the deal. This is a major problem for investors. Higher rates means simple interest accumulated significantly more over the span of 20, 30 years; and higher mortgage payments usually mean lower monthly, quarterly, and yearly ROI's.
Traditional Financing
Now, in order to grow your bottom line cash flow, increase your assets, and lever your financial profile you need financing. We have the ability to lend in three states, with many more states pending.
Properties are always being financed, and levered in order to grow the bottom line for land owners, property owners, and real estate investors. The more buildings you have the more cash flow you'll have but as previously discussed regarding banks and taking a quick study as to why their rates are higher than normal; banks have several locations, millions of employees, thousands of employees and significant overhead cost; usually traditional or middle market banks interest rates are really high, and stipulated to be blanketed against two or more properties. We don't cross-collaterize, even though banks have it a normal way of doing business.
We have solved this issue, and have an in-house lender on board. Hope Street Funding is a registered lender with the NMLS, and the main officer, is approved for financing properties in California, Colorado, Florida and pending 12 other states including New York, and other wealthy states where most of our owners own or invest in. Hope Street Funding is also licensed to manage, make, and service loans at its discretion.
Tacit Knowledge
We have the tacit knowledge to acquire, dispose, lease, manage an asset, manage trust accounts, and lend on any asset- in-house directly with investors at wholesale level-negotiate better rates including CRE, Industrial, Multi-Family, Luxury Residential, Residential, Single Family Residences to four units.
Apartment & CRE Financing (10-300 units)
We understand leverage, and we practice it very well, in fact we pass on the savings to you, and offer you rates that are wholesale. Wholesale means that we obtain the same loan at your middle market bank (i.e, let's use BC Jordan for example- not real); we source the loan and they wire us the money for us to fund your transaction. Normally, If you walked into the branch, the same rate would cost you 4.25%, for us, the rate would be 2.99%. Well, why do we obtain a lower rate regardless of the millions you have in your bank, or countless loans at your bank, or repaid loans at your bank?
Its simple, We do more volume than you, regardless of the number of zero's in your bank account. We simply get lower rates through our business channels- and pass on the rate savings to you when we originate your loan.
Vertical Integration + Property Management = Maximizes Owners Wealth
Reasons Why We Maximize Your Wealth
- Lower Rates = Lower Mortgage Payments
- Lower Mortgage Payments = Increased Cash Flows, and Increased ROIs for Investors
- Increased Cash Flows + Strong ROI's = More Investors will back you faster, also Faster Replenishment of Down Payments (Quicker to Recapture "X" Dollar Amount with higher cash flows)
- Larger Sources of Down Payment = More Assets That You'll Purchase, and more assets that we will manage for you.
- You use your capital, and place that on a down payment
- We find and secure your next investment-in house
- We underwrite the apartments/leases-in house
- Renovate, Reposition, Refinance, Cash Out and Help you acquire another one- in house
- We all win, Rinse and Repeat steps 1-4.
- Your Cash Flow and Balance Sheet Grows
- Your Net worth Increases as cash flows increase and appreciation rises
Apartment Opportunities (Off-Market Investors)
The other problem with having a vision of growth within your family office, or company; is finding transactions to grow your business. If you're business is apartments and steady cash flow, we have what you are looking for. We have a steady flow of transactions. We work more efficiently in having active relationships with sellers, and other landlords who actively dispose assets off-market. We can source these transactions, and offer them directly to you.
Which means we want to support your goal of acquiring, renovating and repositioning, leasing, leveraging, and doing it all over again. Please see our off-market page for more information.
Why Us?
A+ Service + Satisfied Tenants = Higher Cash Flow For You
Our goal with each building we take on, is simple. We want residents to pay a premium that is market value, or closest to market value per unit. Why is this?
Poor service due to bad communication between tenants and property management companies has been a unique opportunity for us to enter the market space and truly provide clients A+ Service meanwhile being ethical, moral, and maintaining integrity. The goal we seek in each building is to renovate or lightly fix the asset and truly making the site a pleasant place to come home for all the tenants. When properties aren't managed properly, we've noticed that there's negative resentment for property owners, and property managers, then the blame game begins. We avoid those fall outs. We simply know what it takes to get your property from a B-, to a A+ property.
We've learned that tenants don't mind paying for premiums as long as its visible. Most tenants don't care about the going market rent. Most of our tenants will pay larger premiums this year solely because assets are clean, upkept, safe, expectations are properly communicated with tenant expectations for them to oblige, meanwhile obtaining market rents, and or premiums. This is why you want to hire us. We can quickly extract variance cash flow and turn assets that are not performing, to performing well.
We have found that the answer is simple, if we provide you (the landlord, investor, developer, etc) our vendors, and our tenants A+ service, while being ethical and moral in all of our business dealings, the more cash flow you'll have from our management. We practice the Golden Rule, "Do unto others as you would have them do unto you". We expect good service so we give it first. We expect excellent tenants, so we treat them with A + service; we don't skip on the level of service they deserve. We treat them as if we are the owners. Most preach this, but few really follow and live this. For us, it's a way of life.
We will provide the following services for you.
- Effective marketing for all properties/units
- Excellent Leasing- with every listing on the CLAW/CRMLS/MLS Free of Charge (no fees for leasing assets), this means that you'll have thousands of realtors seeing it, and the marketing will be displayed in various websites including our own
- Zillow, Redfin, Apartments.com, and other sites will display all of our listings, allowing more tenants that fit the tenant leasing criteria
- Strict Leasing Guidelines
- Separate, trust accounts for each of your properties; interest-bearing
- Zero commingling of any of your money/deposits, 1:1 ratio, each building has its own single account, reconciled and locked in a monthly basis
- Digital or Manual rent collection, expense disbursement and proper legal actions
- Top of the Line Training, and Management of in-house apartment managers
- Legal Training for all in-house apartment managers to avoid discrimination lawsuits
- Reporting: Monthly, Quarterly, Yearly
- Software, we write our own software that helps us manage task, people, etc.
- Upgrade all your buildings from manual to digital management and train the staff on new and updated software
- Upgraded risk management for monthly and year-end financials, income and expense registers, mortgage payments and market variance analysis.
