The Process
Identifying a Property
Cubos Capital is constantly looking for investment opportunities. Many projects come to us from brokers with an inside or off market deal because they know Cubos is flexible, will close once committed, and is well funded. The reputation we have with many brokers makes us their first call.
Due Dilligence
Cubos takes any potential deal and runs it through multiple scenarios to find the best path to success. The risk involved is a large factor when it comes to our modeling and we take the path that pays the highest return for the opposing risk. Many times we will operate in different stages of cash flow as we move to the final result. The goal is to have the final product be the highest value possible while minimizing risk along the way.
Negotiations with the Seller
We are patient negotiators. We want the best deal. We are well capitalized and able to move very quickly as part of negotiations, but we are just as happy to watch from the sidelines until a seller feels comfortable with our offer or takes another.
Investor Call and Closing
Once the property is under contract and our plan for the property is finalized we call for investments. At this time investors can decide to invest in the project or pass. If they choose to invest, they will make their contribution and sign the investment documents to make it official.
Property Renovation and Operations Optimization
There are multiple phases in each project. From the day we take possession the process is in motion. We immediately begin operational improvements and scheduling for any physical renovations. We evaluate current management and begin the training process. We provide incentives to key personnel based on key performance indicators. The goal is to have our team solidified and operating to their potential when the property renovations are finished.
Operating for value
Cubos will most often operate the property to realize revenue and profitability gains before moving to sell. There are times when we will accept a purchase offer shortly after the property is finished or recapitalize the property to pay out investors their maximum return. Most often Cubos will operate the property for multiple years to create additional value before selling.
Selling and Investor Distribution
When the project ends and we find the right buyer, Cubos will sell the asset. After closing we will do a final calcualtion for all investors and pay out the initial capital invested along with profits earned.
