6 July, 2020NewsJuan Zarate

Multi-Family Improving Communities & Connecting Families

A fully-integrated and self-managed company, Fratelly has provided world-class management, leasing, and development services throughout Hampton Roads and the surrounding region for decades.

By regularly investing in its properties and innovative lifestyle amenity packages, Fratelly Capital creates environments that empower tenants and residents to reimagine the way they work and live.

Quality is key. When making upgrades for a long-term hold, we value the importance of investing in long-lasting, durable improvements that will not need to be often replaced. Preventive maintenance is a critical component and one of our primary goals. By spending money on big-ticket items like roofs, our properties will be better prepared to weather the next downturn, when replacement funds might not be as plentiful.

“Risk is anything not part of the plan.”
“Risk” is one of the most misunderstood aspects. There is an entire science of understanding risks and quantifying it. Unfortunate events can happen within any project. The presence or absence of a regrettable consequence is never the issue. The question is whether you have taken it into account. We are a team of Solution-Oriented members.

Forecasting unforeseen events is our protocol when we undertake a new project, we also put together a risk management plan. We prepare it with our Deal Analyzer RE Software (a sensitivity analysis tool), a variety of outcomes, which could result from variables beyond our control. It provides us with the most likely worst-case and best-case scenarios. We focus on terms, leverage, and three financial variables; price, down payment, and loan to interest.

We further categorize it according to the type of risks it represents. Feasibility, Time Delay, One-time Financial Costs, Recurring Costs, and Quality. Asset protection is like fire insurance; only instead of saving you from fire damage, it prevents lawsuits from wiping out your assets. Our asset protection provides full coverage from before a lawsuit occurs to after a judgment is made. A good asset protection plan for investors can protect current and future equity and prevent legal disasters from happening before they begin.

Five Steps To Manage Risk

Enumerate the potential risks
Qualify the risks (time, feasibility, costs, quality)
Determine the likelihood
Quantify the impact if the threats come true
Develop contingency plans for the risks with the highest impacts

Value-Added Improvements and upgrades

“There are many ways we intend to increase the Net Operating Income; we call it creating value with long-term hold.”

Here at Fratelly Capital, in all of our properties, we strive to make high-value upgrades at low-cost. Our priority is to ensure that, on their own, the enhancements will provide a triple bottom line returns. Quality is always key. We upgrade entryways, leasing offices, and common areas, and install new fixtures, appliances, and flooring within units. We also make energy-efficient upgrades to lighting and create more open spaces and community gathering areas.

We create added value by implementing strategic methodologies. Such as reducing operating expenses, integrate utility reimbursement programs such as RUBS, conducting cost segregation analysis, lease out excess parking and storage space, establish new sources of revenue, and implement a targeted approach for marketing campaigns.