Private Equity Real Estate Investing




WHAT IS KBDG?

K Bennett Development Group is a real estate investment and development company that operates in the Pittsburgh market. We acquire homes and parcels at deep discounts and use our team’s construction and design knowledge to create exclusive end products that are both affordable and appealing to home-buyers. We serve as a great asset to local neighborhoods by transforming dilapidated properties into completely renovated homes.

Recently, our team caught the attention of HGTV and appeared on an hourlong pilot episode called “Steel City Rehab.” The episode detailed every stage of our unique rehab process and followed us as we selected, purchased, designed, renovated, and ultimately sold a featured property.
 
 

THE BUYING PROCESS:

We’re so conservative with our purchases that instant equity is created the day we close. Successful real estate investors know that you’ve either failed or succeeded the moment you make an initial purchase — which is why we use a strict formula when calculating our own. We’ll typically pass on opportunities that most investors would seize because, simply, the numbers don’t fit into our guidelines. There are plenty of investment properties out there, and our effective marketing strategies ensure that we’ll find them.

Because we work primarily with personal and private equity, we have immense leverage throughout the buying process. A majority of the houses we pursue are in need of extensive repair, making it nearly impossible for a buyer to receive bank-issued financing for the property. Knowing this, sellers will heavily discount their sale price in exchange for the speed and ease of a purchase offered by a cash buyer.
 
 

THE DEVELOPMENT PROCESS:

Our developments can range anywhere from full-gut rehabs to more streamlined, primarily cosmetic fixes. We’ve developed ongoing relationships with contractors who are willing to work with us at discounted prices for the promise of future work. Consequently, we’re able to keep our budgets tight and maintain a healthy bottom line. For home-buyers, that means we can offer average prices on way-above-average homes. Though we rely heavily on our team of design experts and licensed realtors to configure a specific plan for every project, every decision is ultimately made with the final buyer in mind.
 
 

WHY INVEST WITH KBDG?

The key advantage to investing with K Bennett Development Group is straightforward: Our returns are unmatched in comparison to most investment options available today. With us, individual investors can expect to earn an annualized percentage rate between 8-12%, depending on their needs and commitment levels.

Additionally, investing with KBDG is 100% passive. Example: A $100,000 investment earning a 12% annual interest will pay the investor $1,000 every month without holding and repair costs or tenant headaches. Meanwhile, the investment is still secured by a tangible piece of real estate. Quite simply, compared to rental property investments, we offer higher rates of return with the same amount of security while eliminating the hassle of additional, hidden costs.

Investor commitments can range from single six-month property investments to multi-year deals at fixed annual percentage rates. However, long- and short-term commitments share the same level of security since returns on long-term investments are paid from the profits of many short-term projects. This eliminates the risk of investments affected by unforeseen market shifts over a period of several years.
 
 

WHAT ARE THE RISKS INVOLVED WITH INVESTING IN REAL ESTATE?

1. Overpayment of initial purchase. This is the primary reason most unsuccessful real estate investments fail. We prevent overpayment with our disciplined and structured methods of calculating purchases — methods that use strict, tested-and-proven guidelines.

2. Underestimation of renovations. To minimize this issue, our team performs meticulous inspections of all potential investment properties. To eliminate the risk altogether, it is imperative that a project still fits comfortably within our guidelines after a generous overage figure has been factored into the renovation budget.

3. Shortfall of project funding. Real estate investments often fail because there is not proper funding in place to accommodate for unforeseen problems. We avoid this risk in the same way we do under-estimation: by factoring overages into the budget. Time is an important factor in real estate investments of this nature. Eliminating a funding shortfall prevents a project from being severely prolonged or, worse, coming to a complete standstill. Not eliminating it, however, can expose investors to market decline.

4. Market decline. This is the most common concern of potential investors in real estate. Obviously, not all market swings can be predicted in advance. However, knowledgable investors are able to accurately project what the real estate market will do from a short-term standpoint. Largely impactful crashes occur during a substantial amount of time. Therefore, efficiently completing projects within a set timeline allows investors to avoid the impact of any significant downturn.

5. Fire, flood, personal injury, fraudulent sale, and vandalism. With proper insurance policies budgeted for and in place, we eliminate these risks entirely.

 
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In today’s market, investing with K Bennett Development Group is a profitable and secure way to diversify your investment portfolio. To discuss available options in detail, or to inquire about investing in general, feel free to call us at (412) 979-4494.

Thank you for your time, and I look forward to hearing from you.

Kris Bennett
Owner, K Bennett Properties, LLC
 

Ready to invest with K Bennett Development Group?

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