Frequently Asked Questions
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.
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.
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.
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.
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.”
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.
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.
• 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.
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.
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.
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.