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Investment Strategy

J.P. Ling & Co. applies three different strategies when it comes to real estate: 1) The "Remodel Quick Flip" (RQF) strategy involves renovating the interior and flipping the property at a premium. This strategy on average takes 3 months to distribute returns back to investors. 2) The "Square Foot Add-on" (SFA) strategy involves remodeling the house by adding a 400-800 square foot add-on at the region's market rate in order to sell the property at a premium. This strategy on average takes 6 months to 1 year to distribute returns back to investors. 3) The "Tear Down New Build" (TDNB) strategy involves completely tearing down a house and rebuilding it. This strategy on average takes 2 years to distribute returns back to investors.

Overview: 

1)  Remodel Quick Flip Strategy ("RQF") 

  • ​Timeline: 1.5 to 3 months

  • Return scenario:  10% return hurdle + 20% on additional realized profits

  • Average total returns: 15%

  • Additional details: Renovating the interior of a property can be done at a cost of ~$80-$150 / sq ft. Silicon Valley market rates will charge a premium $ / sq ft. for modern-style homes which is where value for investors is created. 

2)  Square Foot Add-on Strategy ("SFA") 

  • ​Timeline: 6 months to 1 year

  • Return scenario:  10% return hurdle + 20% on additional realized profits

  • Average total returns: 25% 

  • Additional details: The ability to add 400-800 square feet at a cost of $100-$600 / sq ft. and selling at premium Silicon Valley $ / sq ft. market rates creates value for investors.

3) Tear Down New Build Strategy ("TDNB")

  • Timeline: 1 to 2 years

  • Return structure: 10% return hurdle + 50% on additional realized profits

  • Average total returns: 60%

  • Additional details: Takes roughly 6 months to 1 year to get a permit to start the work on a property. If the firm is able to find properties with permits already approved, the time to distribute returns can be shortened by 50%. The firm will build a property from scratch at the highest quality J.P. Ling & Co. is known to deliver. 

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