Frequently Asked Questions
Platinum Commercial Holdings, LLC, is a Wisconsin limited liability company whose overall goal is to bring together investors and commercial real estate investment opportunities through extensive research and high-level project management services, using a completely customized approach tailored to each project’s type, size and available budget. We both assist clients in finding the right commercial assets in the multi-family, office, retail and industrial sectors and we help find and develop commercial asset opportunities with commercial asset partners which will represent significant investments which will be profitable and secure for all clients involved. We “parent” all these opportunities, from research, to due diligence to the management of the deals going forward — whether working with fewer partners all the way up the more involved commercial investments requiring management and meeting of intricate and complicated SEC standards.
PCH seeks to acquire optimally located mixed use retail, office, multifamily and other commercial properties located throughout the U.S., specifically in emerging markets that show prospects of both job and population growth. Platinum has the insight, detailed processes and partner connections to identify, acquire and "shepherd" potentially profitable properties in the right markets throughout their life cycle, delivering healthy returns for investors we bring into our syndicated commercial deals. This may include properties we directly purchase and own 100% within our own group of investors, or properties identified by others with whom our syndicates can co-invest or joint venture to own a portion of the opportunity. In most cases we form a syndicate (group real estate investment) with which to pool funds and acquire properties, usually with a value of $5 million and up. We do the due diligence in granular form to be sure the guesswork is done before gathering investors for a deal. This process also reduces the risk and adds to the comfort level of investors. We manage the whole deal under the PCH umbrella for the average 3- to 5-year lifespan of the asset before we either sell it or refinance it. Every deal is unique.
PCH serves a niche space in the real estate capital world by targeting transactions that are too small for institutional investors but above the point at which high net worth individuals can operate with PCH’s level of efficiency. In doing so, PCH is able to provide investment partners with access to capital as they outgrow the “friends and family investors” they may have started with. On the other side of the customer spectrum, PCH provides investors access to transactions falling within this unique space together with the benefit of PCH underwriting and the transparency of a small company.
We are consultants in the purest sense of the term —not real estate agents, brokers or mentors. Our goal is to bring together commercial asset investment opportunities through extensive research and due diligence, using a completely customized approach for all clients involved, within whichever sector they choose to invest, regardless of size of project or budget. We do not wish to compromise neutrality when we advise our clients; therefore, we are not tied to real estate listings, certain markets or types of investments. There are no boundaries when it comes to advising clients. Platinum Commercial Holdings, LLC should be your choice when it comes to development, acquisition, “parenting” and management of commercial real estate opportunities through our research, knowledge and extensive network of private money partners.
First, we conduct high-level research to find the right emerging markets to fit our investment criteria. Then we spend time developing relationships with brokers in those markets to find the right commercial properties that have value-add opportunities and will produce solid cash flow. Once we get them under contract, we start the “syndication“ side of our business. We find bank loans for 65% to 80% of the purchase price and organize small groups of investors to put up the down payment and closing costs. We conduct extensive due diligence on the properties, work with experienced securities attorneys to organize the appropriate corporate structures and to draft the legal documents necessary for SEC compliance, and we hire professional property managers to run the day-to-day operations. After closing on the properties, we oversee the property managers, handle all communications and financials for the investors, and implement our value-add strategies, all the way through the “lifespan” of the property until we sell it — usually within 4 to 7 years.
As a client, you might need assistance finding the best value for your investment in the event you are looking to expand into another type of asset, or to get a feasibility study of the best use of commercial asset funds in a certain market. In that event, PCH can act as your confidential representative to take your study through to finding a potential investment itself – serving as your representative all the way to the closing of a particular investment deal. We protect your privacy every step of the way. A client might want us to research the next emerging market within a certain geographic area, whether by country, state, region, county, city or even neighborhood. This might be the extent of our services for the client, for instance, to ascertain the client is prepared to undertake a feasibility study, etc. A client might have an idea of a market to invest in, but may know nothing about the pitfalls involved in moving into a new area in regard to zoning, taxes, crime statistics, future development, changing infrastructure, security/safety, or competitors who also are eyeing that marketplace. In such an instance, PCH is your source to research everything you need to know so that you can make a sound decision whether or not to move into that market as well as how, or when.
With our large and ever-growing network of experts in the commercial asset management, tax/accounting, legal and government areas, we are your “one-stop shop” for all your answers involving acquisition, development, research and advisory assistance. Using a flexible range of retained hours packages, we step in and step out exactly where and when you need us.
Serving clients from all over the world, we undertake research of markets on a global basis. We can search for the optimum market for your business plan, or focus on areas that you identify. Our thorough analysis is unbiased and honest: we help you determine the viability of those markets. Regarding investment opportunities, we focus primarily in the Middle Atlantic, Southwestern and Southeastern parts of the U.S., but market conditions change, so we are constantly evaluating other areas to determine whether they meet our criteria for “emerging markets.”
Emerging markets go through a predictable cycle. And they sometimes have the potential to appreciate very quickly during a short (3- to 5-year) period. A defining characteristic of an emerging market is a sharp increase in the number of jobs that often results in an accompanying rise in occupancy levels and rents. In addition to monitoring these markers, PCH evaluates a number of other factors that also contribute to the market’s overall health. When evaluating a market (or submarket), Platinum forms a deal-specific team, using our own personnel, local advisers and consultants, that drills down to the details, evaluating the likely impact of current codes, laws, zoning, taxes, demographics, unemployment statistics, new employment prospects, infrastructure planning, paths of progress and other target statistics to find indicators suggesting a strong potential of expansion, which is the hallmark of an emerging market. Not all markets are in the same phase of the cycle at any given time. That makes it essential to meticulously research each one to determine the optimal time for investing and then exiting the market. This is where PCH focuses its efforts — as timing is everything and a well-timed investment can be lucrative for all of the participants.
Clients come to us in different stages in the business process and with varying needs for research and consulting. We can provide the most comprehensive set of our services, or clients may choose one or more of our service offerings, “cafeteria style.” We tailor our services to your goals and budget. When a client asks us to research the next best market, we drill down to every aspect you might need to know for expanding, modifying or changing the scope or size of your commercial business. We closely examine such areas as current codes, laws, zoning, demographics, infrastructure planning … everything a company might need to know to make a decision on a move or expansion. Once all the research is done, if requested, we can also represent our clients to possible brokers with actual properties where we are their agent at closing, to cover all areas. But we might also be asked to simply do the research and due diligence on emerging growth markets for potential expansion down the road. Our consulting program can be broken down into stand-alone sections to tailor a custom designed set of services for you. Since we aren’t real estate brokers, we have the ability to be neutral when it comes to finding the right fit for our clients on all fronts.
Our ideal investors are people looking for better returns than they might be currently experiencing in traditional investments, who want a voice in how their funds will be spent, and who want to take advantage of the benefits of professionally managed investment-grade commercial real estate without the hassles of dealing with day-to-day property operations.
• We find the property through our contacts with local real estate brokers and sellers. • We form the company that will take title to the Property. • We hire experienced corporate securities counsel to form and structure the companies and draft the private placement offering and corporate documents and to do the filings necessary for SEC compliance. • We sell ownership interests in the property to Equity Investors. • We obtain institutional financing for 65-80% of the acquisition, improvement and operations costs. • We obtain title and hazard insurance at closing. • We hire a professional property manager to operate the property and implement our improvement strategies. • We oversee the property manager. • We provide quarterly evaluations of the financials and cash needs. For cash-flowing properties, that means quarterly checks for our investors. • We generally offer annual preferred returns to our investors, plus a share of profits. • Our goal is to increase the value of the property and then sell. • After we sell the property, we return investors’ funds plus their share of any profits. We are in the business of seeking out solid commercial investment property to offer to private money partners who wish to put their money in a much higher yielding investment than what they are currently in. We then act as the “parent” company of this investment, which manages the entire project as well as communications with all partners, research in dealing with the SEC regarding these opportunities and basically taking the hassle out of finding, managing and monitoring the performance of the investment, for the life of the investment.
We invest primarily in the Middle Atlantic, Southwestern and Southeastern area of the U.S. We focus on “B” and “C” markets. We target properties with sound structures with good cash flow, and we increase the property value for refinancing or sell in 3 to 5 years.
We hire professional property management companies to operate all of our properties.
We buy and sell apartment complexes and commercial real estate, usually within a span of 4 to 7 years. We also have expertise in senior housing/assisted living, college conversions and land acquisition and development.
We pool money from private investors for the down payment, acquisition and improvement expenses. You may be able to join our program as an equity investor. PCH seeks qualified accredited investors to participate in private money offerings to purchase commercial real estate properties on a share basis, as either debt partners or equity partners for the life of the asset, usually 3 to 5 years in duration.
You can create a self-directed IRA to invest in real estate or use the one you already have. A self-directed IRA allows investments in real estate, notes, private placements, tax lien certificates and much more. Your profits return to your IRA where they continue to enjoy the available tax deferred benefits. We work with your self-directed IRA company to provide the paperwork they need to fund your investment.
According to Investopedia: “An accredited investor is a person or entity that can deal with securities not registered with financial authorities by satisfying one of the requirements regarding income, net worth, asset size, governance status or professional experience. The term is used by the Securities and Exchange Commission under Regulation D to refer to investors who are financially sophisticated and have a reduced need for the protection provided by regulatory disclosure filings. Accredited investors include natural individuals, banks, insurance companies, brokers and trusts.” The SEC adopted those requirements in order to protect investors unable to sustain the economic risks of investing in unregistered securities. For more information about Accredited investors or how to become one, please email us at email@example.com or call us at 847-574-7837.
We currently provide quarterly payments of simple interest to our partners. If you need monthly income, we can make monthly payments. If you are not looking for monthly cash flow, you will get one check for the principal and interest when the property is sold or refinanced.