Building a multi-unit condo or home development is very involved. The development process can take years of planning, approvals, zoning, construction, etc. Axiom Realty Capital locates developers who are in the crucial stage of securing financing or who need to liquidate their project quickly.
Axiom helps developers who must pre-sell a certain number of units in their development for their construction loan to be approved or who need to quickly liquidate inventory. We contract with the developer to acquire a large block of pre-constructed units, raw land or finished units for a 15%+ discount. This allows us to pass on the discount to our buyers and helps the developer secure bank financing or sell out their project in record time.
We work closely with the developers, their banks and other financial partners in creating a structure that assists them in launching their projects and meeting their financial obligations.
Our exclusive deal flow is based on our ability to purchase in bulk. For example, we are able to negotiate ‘bulk discounts’ on properties because our group of buyers purchases 40 to 50 condominium units at one time.
Deal Structures
Our deal structures typically fall into the following categories:
- Discounted preconstruction “flip” programs
- Deeply discounted real estate
Both structures include condominiums, land and free-standing homes.
Targeted returns for either structure range from 27% to 42% ROI. Typically exit strategy timelines are 18 to 36 months.
This program assists developers in ramping up their project in order to meet bank presale requirements and their own marketing goals. Under this program, buyers have access to below market terms and special pre-closing exit strategies.
Terms typically include:
- 15% to 18% discount below similar condos in the same building
- Guaranteed price adjustments that will lower your cost if the market prices fall
- Deposits remain in escrow
- Developer sponsored resale/exit strategies
As with any business, ‘cash flow is king’ for real estate developers. Our bulk purchase model helps developers generate cash and maintain sales momentum.
In exchange, we are able to negotiate special terms, including:
- Substantial price reductions (e.g. 25%-35%)
- Developer leasebacks and rental support
- Ongoing remarketing/resale support
- Special mortgage rates and terms
With Axiom, buyers are able to get the benefits of real estate investing without the hassle. Our remarkable discounts and helpful real estate investment tools make it possible for you to generate substantial profit after reasonable holding periods of one to four years.