How would a partnership with Foundation Housing work?

Option 1: Partnership
Our Property Boost partnership program is simple: we invest in renovating your rental property, manage all maintenance and leasing tasks, while you retain equity in the house and continue to receive your typical rent. This is a hassle-free way to boost your property value and dramatically increase its market appeal.

These FAQs primarily cover this partnership model.

Option 2: Purchase
Alternatively, we're open to discussing an outright purchase if that better aligns with your goals.

How does the Property Boost partnership program work?

Here's how our co-ownership model is structured:

Equity Retention: Sellers keep an interest in the property. This interest is calculated as the property's established value at the start of the partnership divided by the property's improved basis after Foundation has upgraded the property to align with our brand standards.

Passive Investment: Sellers transition to passive investors. This means:

• No leasing responsibilities.

• No management duties.

• No headache-inducing issues to handle.

Monthly Payments: Sellers receive monthly payments. We aim to make these payments equivalent to the property's current net earnings, ensuring sellers earn the same income with no effort.

Future Purchase Option: Foundation gains the right to buy the property from the seller after a negotiated number of years (typically 2-5). The purchase price will be the property's current fair market value (FMV) at the time of purchase, increased by a fair multiple to account for property appreciation. (ex. If FMV at time of purchase is $200,000 and Foundation buys it outright after 3 years factoring in appreciation of 5% per year, the amount owed to seller would be $200,000 * 1.158, or $231,600.)

What are the benefits of a partnership?

A partnership with Foundation Housing offers a comprehensive suite of benefits aimed at significantly enhancing your property's appeal and financial performance with minimal effort on your part. Key advantages include a substantial upgrade to your property through targeted renovations, which in turn increases its desirability and marketability to students.

This approach not only helps to safeguard your income stream but also strategically positions your property to appreciate in equity value. Moreover, our partnership model is designed to mitigate potential tax burdens effectively. All of these benefits come without requiring any direct involvement or effort from you, as we handle all aspects of the renovation, management, and leasing processes.

How does Foundation Housing determine the fair market value of my property?

The fair market value (FMV) of the property will be determined using the lower of two valuation methods, ensuring an equitable and transparent approach to establishing the purchase price.

Method 1: Comparative Market Analysis (CMA)

Comp Analysis: Utilizes comparative market analysis, examining recent sales and active listings to establish the property’s market value.

Capitalization Rate Analysis: Property’s Net Operating Income (NOI) divided by 10%.

Method 2: Non-Partnership ROI

Investment Return Valuation: Assumes a scenario where Foundation owns the property outright and backs into a property valuation using a 10% capitalization rate.

For valuation purposes, we will select the lesser of the composite market analysis result (Method 1) or the investment return calculation (Method 2), to determine the most fair and supportive FMV for both parties.

Who will be handling the renovations?

Foundation Housing operates a dedicated contracting company staffed with experienced project managers who oversee all renovation projects. This ensures that all work is completed to a high standard, on time, and within budget, providing peace of mind that your property is in professional hands.

What types of renovations can I expect?

The scope of renovations can vary greatly depending on the current state of the property and the potential for improvement. Common upgrades include modernizing kitchens and bathrooms, improving energy efficiency, enhancing curb appeal, and updating living spaces to meet the needs and expectations of today's students. Our goal is to maximize the property's marketability and income potential.

How are renovation costs determined and covered?

Renovation costs are carefully evaluated based on the project's scope and the expected return on investment. Foundation Housing covers the upfront costs of renovations, factoring these expenses into the overall partnership agreement. This approach allows property owners to benefit from significant property upgrades without the need for out-of-pocket expenses.

When do renovations typically take place?

Renovations are strategically scheduled during the summer months to avoid disruption to the academic year and ensure that the rental season is not affected. This timing allows us to complete the necessary upgrades without interfering with your income stream from student rentals.

Can you provide examples of successful renovation projects?

Yes, we have successfully completed renovation projects for five other houses near Syracuse University. These projects all resulted in significant improvements in rental appeal and property value. You can view these houses on our Foundation Syracuse site. We are proud of our track record and happy to share more details and outcomes from these projects upon request.

Who handles tenant leasing and relations?

Foundation Housing takes full responsibility for tenant leasing and relations. Our experienced team manages all aspects of tenant interactions, from marketing the property and screening applicants to handling lease agreements, move-ins, and ongoing tenant communications.

What does the maintenance process look like?

Our dedicated maintenance team oversees all aspects of property upkeep, from routine maintenance to emergency repairs. We conduct regular inspections to ensure the property remains in top condition and address any issues promptly to minimize inconvenience to tenants and protect your investment.

How does Foundation Housing ensure the property remains competitive and attractive to tenants?

We continuously monitor the rental market and student housing trends to ensure your property remains competitive. This includes periodic upgrades and improvements, strategic marketing efforts, and offering amenities and features that appeal to today's students. Our goal is to maximize your property's desirability and income potential through proactive management and operations.

What are the steps involved to move forward with a Property Boost partnership or sale?

1. Property Walk-Through: Book a time for us to come by and check out the property.

2. Budget and Projections Assessment: Foundation will evaluate what renovations are needed and forecast future revenue and operational costs.

3. Making an Offer: Using the clear and fair valuation methods we've outlined, Foundation will put together a formal offer for your consideration.

4. Your Decision Time: Decide if you want to sell the property outright, join our partnership program, or if you prefer to pass on the offer.