Just for a moment, imagine an investment property that produces a high cash on cash return and an exceptional internal rate of return. This property also has much lower risk than any other property available because the majority of the expenses are fixed costs versus variable costs. Additionally, this property has 100% hassle free management and it is located in one of the most desirable markets in the entire country.
We understand that this is the property all investors are looking for. With this in mind, Epifany created an innovative way to achieve these goals for all of our clients. The Forward-Looking Expense Allocation (FLEA) is the only way to increase cash flow, investment return and tax benefits while reducing risk, budget overruns and eliminating management hassles. Our new and patent pending process has proven to be extremely valuable and successful to our clients.
The Forward-Looking Expense Allocation (FLEA) is a method of providing coverage for projected expensesover the holding period of an investment property. The FLEA provides for extremely high levels of cash flow relative to the initial investment amount while still maintaining high internal rates of return.
The FLEA incorporates several real estate services (i.e. brokerage, property management, syndication, etc.) into one product to create an entirely passive real estate investment that enables commercial real estate investors to achieve multiple objectives simultaneously.
The FLEA significantly reduces an investors risk since the covered expenses are guaranteed by Epifany Properties and the cost of any overruns in any FLEA expenses will be borne by us.
The FLEA significantly increases cash flow levels over the holding period—in some cases as much as 300%. With cash-on-cash returns as high as 20%, investors can borrow the required investment even with a high-interest unsecured loan and make a sizeable return on the borrowed capital.
Reduced Investment Risk
The FLEA significantly reduces the investment risk associated with the ownership and operation of income property since expenses that would normally be variable and subject to potential budget overruns are translated into fixed costs. Any additional costs associated with budget overruns are borne by the sponsor, Epifany Properties.
Tenants in Common (TIC) Compatibility
The FLEA is perfectly compatible with tenants-in-common (TIC) ownership. Investors who are looking to purchase a fractional ownership in property can very easily purchase the same fractional FLEA benefit simultaneously. Additionally, fractional ownership is more attractive to investors with a cash-on-cash and internal rate of return focus than those investors with a specific property focus.
Income Tax Advantages
From a 1031 exchange standpoint, the FLEA creates an additional variable that can be adjusted to allow an investor to meet Internal Revenue Code section 1031 exchange requirements which, in almost all cases, are very specific. Additionally, the FLEA allows investors to deduct upfront the majority of the expenses that will be paid on the subject property that would normally be deducted across the entire holding period. This affect that the FLEA has of accelerating deductions is a proven tax-saving strategy.
If you would like more information, please contact us today.
“Earning You Many Fond Returns…”