Home // Residential Real Estate // Montecito Residential Plan

MONTECITO RESIDENTIAL PLAN

The Montecito Companies is continuing the acquisition of single family detached houses throughout Las Vegas. Primarily focusing on residences within premier master planned communities, the fund will acquire a diversified portfolio of approximately 600 houses and position the disposition to coincide with a recovered market. As the housing market recovers, it is our opinion that houses within these communities will have the most upside potential. The company anticipates an average five-year hold for these assets, however there may be some opportunities to sell off some of the homes at a substantially earlier date and realize excellent returns. The houses will be acquired using cash without loans in place, which will minimize risk by owning unleveraged properties and further allow additional upside in the case of high inflation.

During the retention period, a return is anticipated from leasing the properties. With the knowledge that the company’s exit strategy is to sell the homes, only very qualified tenants will be selected. Although strict leasing standards may disqualify many potential lessees, by offering less than market rents Montecito will successfully procure candidates with higher-than-average credits and background histories. The reduction in rents, coupled with a very stringent leasing plan, will also create better tenancies resulting in homes that are well maintained and therefore, eliminating the need for excess rehabilitation at time of re-renting or sale.