INVESTMENTS

RK Properties targets multi-family assets in areas where economic and demographic trends drive strong occupancy numbers and rent growth. It is our philosophy to institute a conservative business plan in the structuring of our properties, including the use of modest leverage of 50-60%, which enables us to meet the priorities of our investors, which are; 1) Preservation of Capital, 2) Income, and 3) Appreciation.

INVESTMENT STRUCTURES
Delaware Statutory Trust (DST):

In 2004 the IRS approved a new and less complicated way for investors to complete a 1031 Exchange into a securitized investment. The DST structure allows the same benefits at the individual level of exchanging after the life of the investment. There is substantially less paperwork and no lender approval for each individual investor, which can slow the process of completing the exchange. Further, the DST structure is much more broadly accepted by lenders including the ‘agencies’ (‘Freddie Mac’ and ‘Fannie Mae’), which makes financing more readily available.

Private Equity Funds:

Private equity opportunity funds have been offered to RK Properties investors since 1976. Each fund is designed with a unique structure through Limited Liability Companies (LLC’s), which provide a diversified portfolio of real estate. The funds are designed to allow investors the opportunity for ownership of institutional investment grade apartments acquired through a disciplined approach to underwriting and investing.

Tenant – In – Common (TIC):

An alternative approach to direct ownership in real estate is through the Tenant-in-Common (TIC) structure. As real estate investors reach pre or post-retirement, there is a need for a unique structure to relieve the real estate owner of the day-to-day intensive management in order to continue with their career, business, or enjoy retirement. The TIC structure provides that opportunity. It allows investment property owners the ability to sell the management intensive real estate and exchange into an institutional investment grade apartment building thereby deferring their capital gains tax. The TIC can also provide the investor with net cash flow paid monthly, the pass-through of all tax benefits to offset the net cash flow, and the potential of capital appreciation.