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Investment Opportunities

Since 1971, Allmark has invested in income-producing real estate, primarily in Southern California and North Texas. Through the formation of limited partnerships, Allmark acquires property capable of producing above-market rates of return. We have a team of industry experts with experience and a thorough understanding of current capital market conditions to formulate sound investment strategies. We are a stable company with an eye to the future.

Why Apartments are Such a Good Investment

  • Tax deferred quarterly distributions from appreciating assets
  • Principal stockholder and some officers typically invest on same terms as all limited partners
  • Housing is a necessity in any economy
  • Immediate cash flow to investors
  • Attractive demographics
  • Minimum volatility
  • Strong risk displacement
  • Provide a hedge against inflation
  • Builds a strong, stable financial foundation
  • Long-term cash flow and earnings

Cash-on-Cash Returns

Allmark evaluates each acquisition on its ability to yield annual cash flow returns of a minimum of 6% to 7% on invested capital. For many years of ownership, the distributions you will be receiving will be tax-deferred , since they are considered a return of capital. Therefore, a 6% to 7% cash distribution is the equivalent of a 10.9% to 12.7% taxable return on an alternative investment (assuming a 45% tax rate).

With a refinancing of the existing mortgage in year 10 of the investment, the average annual cash-on-cash returns increase to 15-20%, and you still own your investment.

Stability is very important. Although past results are no guarantee of future performance, we are very proud of our track record. For properties for which we were the general partner as of September 2016, our limited partners earned a cash-on-cash return over the past five years of  16.02% per year.

Acquisition Criteria

Allmark, Inc. is aggressively seeking the acquisition of Prime “Class B” multi-family apartment properties in the Inland Empire market of Southern California, as well as the Dallas and eastern Texas markets. Preferred properties will have a minimum of 100 units. Allmark does not invest in turnarounds, troubled projects, or government subsidized housing. Allmark seeks multi-family housing communities in high-demand, well-maintained locations that offer great value for the price. We seek out investments where we believe we can add value. We do not make an offer without well informed and timely decisions in this often competitive acquisition and financing environment.

Basis for Valuation

Multi-family is one of the best real estate investments you can make in today’s market. Historically, apartments have low vacancy rates and unlike other commercial sectors such as office or retail, the shorter lease terms help owners capitalize on changing market conditions quickly. Now is the time to invest in multi-family. As the current economy continues to take its toll, demand for apartments is expected to double in the next few years. The reason? Home ownership rates are declining due to tighter lending standards and poorer credit scores.

In the current market of low-cost debt financing, we attempt to leverage our equity, while being mindful to cover requirements for debt coverage. Typically, we will not finance more than 70% of the fair market value. We are conservative and prudent investors.

Applying a capitalization rate to net operating income is a good beginning point to determine value, but must be supplemented with more in-depth analysis to derive a price that will allow us to properly manage the project and achieve our financial goals.

We perform a thorough financial and operational analysis of the underlying property to gain a comprehensive understanding of the cash flow drivers. We interview property staff, as well as competitors. We visit the property several times and send various members of our staff to gain different insight into the property. Our financial model allows us to evaluate many “what if” scenarios involving assumptions for rent increases, vacancy, expense behavior, capital expenditures, and many other variables.

Suitability

Our typical investor is looking for a gradual income replacement strategy whereby their long term cash flow needs come from a diversified investment portfolio on a tax efficient basis. Since we rarely sell assets, investment capital is protected from transaction fees and taxation. Tax deferred cash distributed  quarterly with periodic refinance of properties, typically every ten years, provides investors with a very efficient way to create personal cash flow.

Current Investment Opportunities

Our acquisition team is constantly searching for new opportunities. If you are interested in becoming an investment partner, please contact us so we can listen and learn what your specific circumstances are. We can then develop a plan to help you achieve your financial goals.

Principals

The principals of Allmark have extensive backgrounds in financial and real estate investment, management, and operations. Their confidence is demonstrated by their personal investment in properties recommended to investors.

Brokerage Cooperation

Allmark is a licensed corporate real estate broker in the states of California, Arizona and Texas . We will fully cooperate with other licensed brokers who are active in assisting us in our progress.