Before partnering with Smart Asset Opportunities, people want to learn about projects we’ve already had success on.

What exactly is an alternative investment?

Many alternative investments occur in the real estate market, including a recent project at the Cottonwood Office Park, located at 2893 S Mendenhall Road, Memphis, Tennessee 38115.

Before we delve into the nitty, gritty of the project, let’s introduce a few main characters:

• Dave Zook experienced Real Estate Investor (over 3000 units in his portfolio)
• Garry Pope, Property Manager of over 1200 units and expert in top-of-the-line security systems that increase value and net-operating income of properties
• Steve Woodyard, premier Broker for commercial properties in Memphis area
• Ross & Mary Stryker, Investors & Founders of Smart Asset Opportunities

In the case of Cottonwood, Steve (broker) found an amazing opportunity: a 50,000 sq. foot office complex in good condition with stable, reliable tenants with an asking price of just under $2 million. That’s just $40 per sq. foot!

How is this possible?

For starters, the overseas owners of the property were anxious to sell and Steve discovered the opportunity just in the knick of time. Here’s where Dave (investor) comes into the picture.

Dave contacted our team at SAO because he knew we could quickly raise the money among our network of enthusiastic investors. With an opportunity such as this one, time is of the essence, and getting together the funds, in a short period will make or break the situation.

SAO investors made this project possible and got it off the ground in a matter of days! We raised the cash quickly and without bank involvement.

It is a collective endeavor.

For partners of SAO, everyone is given the opportunity to be included on our projects.

After Dave sent out the proposal, we had essentially pooled the funds overnight. In fact, we even over funded the project, which subsequently allowed us to refinance a portion of the investment in a short period.

Let’s say you invested $100k in the Cottonwood project. Here’s what your returns who have looked like:

There was an 8% preferred return for investors, and due to refinancing, investors received back 42% of their investment within two months, which boosted returns to double digits.

Cost segregation on a commercial project accelerated the depreciation, which is given to investors to offset their taxes and income.

Investors were still getting the benefits of a $100k investment while being able to reinvest the returned $42k and make high returns with a tax offset from the original $100k.

In the case of Cottonwood, the property was already pretty stable, however, in other cases of poor management, low vacancy or deteriorated facilities, Garry (property manager) is brought on to increase the value of the property.

Garry is more than just a property manager. He is an expert at increasing the value of properties in a mere matter of weeks, specifically by installing exceptional security systems that protect properties and tenants and dramatically increase the value and net-operating income of the units.

With great property management, the value of the property will increase in the subsequent years and your investment is looking better and better.

Four Takeaways from Cottonwood

1. Working with the right network and team.

This is not a DIY endeavor. The high returns are a direct results of our networking efforts and connections with people like Dave, Garry and Steve, to make these opportunities possible.

2. Velocity of money.

Getting a portion of our money back quickly meant we were able to reinvest in the project.

3. Tremendous returns.

4. Tax benefits.

When you partner with SAO, you will regularly be alerted of new projects and opportunities, the minute we know about them.

If financial freedom is important to you and your future, ask us how you can become an SAO partner.

We’re here when you’re ready.