Rustic Capital’s target markets include metropolitan statistical areas (MSAs) in the southeast that have positive job growth and a diverse employment base as a market and sub market. We buy properties that cash flow day one and have a projected IRR of over 15%. Tax savings from cost segregation are passed on to investors in an effort to reduce tax burden. To mitigate risk, we buy for cash flow, place long-term agency debt on our properties, and keep ample cash reserves.
Simply speaking, this is purchasing the right property at the right price. We look for performing assets that will pay our investors a preferred return starting from the first quarter of acquisition.
Well before an asset is acquired, a business plan is created which outlines strategies for creating value. It is the implementation of this plan that allows Rustic Capital to deliver exceptional returns to its investors while minimizing risk. Strategies may include, but are not limited to: capital improvements, interior renovation, implementation of R.U.B.S., and operational efficiencies.
Implementation of the business plan is critical and this is where Rustic Capital manages right. Through alignment of interests, effective communication, and superb customer service, Rustic Capital is able to oversee its vision of value creation for investors, residents, and communities.
Disposition of the property typically occurs between 5-10 years. Our investors benefit through significant forced appreciation which was the realization of a project that was bought right, with a plan to create significant value, and then implemented properly.