How We Work
T.E.H. has established a reputation as a serious buyer that stands behind its offers. This leads to many off market transactions. Our reputation gives us an edge during negotiations and against competing buyers.
Basis for our Acquisition Process:
- Meticulous selection process.
- Negotiation of purchase terms and conditions.
- Intensive due diligence with internal oversight.
- Estimation of renovation costs.
- Negotiation of non-recourse financing mostly from the Federal National Mortgage Association (FNMA) also known as Fannie Mae. Financing is generally for 7, 10 or 12 years at rates of approximately 4.5-5.5%for 75-80% of the acquisition cost. This does not include renovations and other closing costs.
- Raising equity capital
T.E.H. does not outsource property management. We improve, own and manage all of our properties which provides added value including:
- T.E.H. usually invests equity in the properties it manages. This aligns its interests with investors.
- Hands-on management, trained by T.E.H., is based on daily, local oversight.
- Flat organization allows for quick approval and decision-making.
- Acquisition of materials for renovation and maintenance is centralized. Due to the size of its portfolio T.E.H. generates important savings.
- When marketing units, referrals from one property to another to retain tenants.
- Improved management enables T.E.H. to increase occupancy and collection.
Once T.E.H. acquires a property we have a thorough reporting process in place which includes quarterly reports to investors.