What We Do
Concept
Blue Apple NYC seek to provide investors with the opportunity to invest in Multi-Family properties 1-5 in New York City.
Competitive Advantage
In house solution with fully integrated team to manage process from start to finish : Investment, development, management, sales.
Mechanics
Invest through our in-house managed Fund offering flexibility with capital to be rolled 3 times during the life of the fund.
Our Concept
Goal
Blue Apple NYC seeks to provide investors with the opportunity to invest in Multi Family properties through our in house managed Fund As we target high performing markets in NYC, we will purchase properties strategically, renovate effectively, manage rentals efficiently, and sell at advantageous times.
Point of difference
Blue Apple NYC is one of the only structures offering real estate development, renovation, rental and asset management of small luxury units allowing access to an all-inclusive investment solution with high returns.
The main advantage is that our renovation and construction process is fully integrated. This development will be carried out by our own subsidiary, which will allow to gain significant time and financial return compared to other development contractors available on the market. It will also give our fund the flexibility and the total control of the project in order to meet our financial target.
Sequences of value creation
We aim to deploy capital over a period of 5 to7 years During this period, we will sell and/or rent the portfolio of properties and distribute proceeds from the gain on development, sales and rentals Then we distribute the final performances until redemption from the investor at the end of the harvest period.
Result
We aim to make investors benefit from predictable passive income and long term exposure to home price appreciation across a diversified portfolio of properties in New York City, all without the burden of managing rental properties themselves New York City provides a reliable and consistently appreciating real estate market driven by its status as a global financial hub
Competitive Advantages
Aquisition value
Our experience and expertise will provide us with a direct access to properties with very low market value Our target is to buy properties at a discount target 25% to 30% below market price
Fully integrated development team
Instead of relying on external contractors, we have a dedicated team of experts in various fields, including renovation, construction, engineering, architecture, permitting, and project management. This innovative internal structure is our unique selling point, as it helps us avoid common delays. As a result, we can complete the renovation and construction processes faster than the market standard, aiming for a 50% reduction in time, and at a lower cost, aiming for a 10% reduction in expenses. This optimized development process is the key to our success and will ultimately lead to higher financial returns.
Focus on Brownstones Multi Family 1-5 units
We target small buildings (under 5 units) in order to provide maximum return.
Under 5 units, in case of management/rental of the property, the effective rent is not stabilized/capped, called the free market.
Brownstones will be our golden target as sales price is 15-20% higher than other properties due to high quality stones, historical recognition as the most prized buildings in the mind of New Yorkers.
The liquidity of brownstones remains also higher than other goods as well as rental price and put them in the luxury asset category.
Mechanics
Capital Injection
The investor will initially commit a capital to the Fund. Out team will acquire a property, proceed with renovation/construction and rental and/or sale of the property with market appreciation generated with the development made. We will roll this process on the next 5 - 7 years of the investment period.
Incomes
The investor will receive income at the end of the investment period from the added value on the sales of renovated properties.
If the market is not favorable when the development is completed, the investor will receive income for the rentals (delivered at redemption) until the property is sold.
The investor's capital not invested directly will be deployed in Certificate of Deposit that will provide passive income indexed on the market rate (around 5% by year, 2.85% by quarter in the current market condition).
Taxes Optimization
As per of our development process, we will defer and reduce state and federal taxes allowing higher return.
For foreign investor and depending on regulations, income tax rate will remain the one in the US and not in their local jurisdiction.
For real estate investment shorter than 1 year, tax rate will be 37% against 15% to 20% for investment longer than 1 year.
In case of using 1031 Exchange, no taxes will be paid (by us) because it allows the Fund to sell an investment property and use the money to buy another property without paying immediate taxes on the profit made from the sale. It's a way to defer paying taxes on capital gains, giving us the chance to reinvest the full amount into a new property and therefore, helping investments to grow faster.
The woman business-owner status also provides tax advantages to investors.
Capital returns
At the end of the Investment period of 5 - 7 years, we will return the committed capital to the investor at redemption notice.
