“We believe there’s a lot of uncertainty with where to invest right now.

Our sense is that the right student housing investment has the potential to match multiple investment objectives – while historically demonstrating minimal correlation to the economy or real estate cycles.”

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NB targets opportunities that can potentially
offer a balance of multiple key benefits

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Brian Nelson Featured Guest on KSL’s “More Than Money”

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NB targets opportunities that can potentially offer a balance of multiple key benefits

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Brian Nelson Featured Guest on KSL’s “More Than Money”

5 KEY

5 KEY

STRATEGIC OBJECTIVES

NB targets opportunities that can potentially offer a balance of multiple key benefits

Monthly Cash Flow

Nelson Brothers typically targets properties for investment that boast a track record of high occupancy and monthly cash flow – even during recession. The goal is to provide investments that can pay a compelling pass-through income to investors each month. It’s up to investors whether they receive it by direct deposit or hard copy check.

Annual income estimates will vary based on multiple factors but typical Nelson Brothers offerings target cash flow ranges from 6% to 7.5% annual income.

Monthly Cash Flow

Nelson Brothers typically targets properties for investment that boast a track record of high occupancy and monthly cash flow – even during recession. The goal is to provide investments that can pay a compelling pass-through income to investors each month. It’s up to investors whether they receive it by direct deposit or hard copy check.

Annual income estimates will vary based on multiple factors but typical Nelson Brothers offerings target cash flow ranges from 6% to 7.5% annual income.

Tax Shelter

Nelson Brothers’ philosophy is that a dollar saved is a dollar earned. Real estate may be one of the only investment assets that tends to appreciate over time while the IRS allows you to write off the wear-and-tear usage of the property; expenses that are typically factored in already.

Historically, it has been very common for Nelson Brothers assets to shelter greater than 100% of the distributed income. In fact, in 2015, Nelson Brothers sheltered over 100% on 22 of our 23 properties. There are 3 critical factors that helped make this happen.

First, land cannot be depreciated. So investments in areas where land is sold at a premium such as California or New York, the amount of the investment that is depreciable is low. However, in college markets such as Provo, UT, South Bend, IN, etc. land values tend to be significantly smaller. Second, multi-unit housing is written off at a 27.5 year schedule. This gets much more favorable tax treatment than retail or office properties that are scheduled over a 39 year period. Third, Nelson Brothers properties tend to have higher leverage ranging from 50% to 65% loan-to-value. With more leverage, there is a higher ratio of depreciable property vs. equity invested.

Asset Preservation

Nelson Brothers primary goal is to preserve invested capital. Our strategy to deliver on this is to focus on brick-and-mortar investments with strong track records of profitability and high occupancy, in markets where the nearest competitors boast similarly high occupancy – all anchored by the historical stability of a major university and the potential for constant demand for housing that seems to have minimal correlation to the economy, to market fluctuations or to real estate cycles.

Nelson Brothers also emphasizes properties we believe to have irreplaceable locations and/or other sustainable competitive advantages that may be difficult for current or future competition to replicate.

Capital Appreciation
Nelson Brothers targets assets that can also appreciate in value over time. Typically, Nelson Brothers favors properties where college enrollment (demand) is expected to grow over time in tight markets where there may be barriers to entry or limited supply growth. Nelson Brothers goal with each property is to potentially grow rental rates at a far faster pace than expense rate growth; leading to improved cash flow and increased net operating income. Often, Nelson Brothers will acquire older, run down assets that may boast a terrific location and an excellent track record but may benefit tremendously from property upgrades, new amenities and a more contemporary look. The goal would be to deploy money carefully and in areas where student tenants would be willing to pay a higher premium. A well-executed strategy can help grow rents, improve tenant quality and increase property value in a relatively short period of time.
1031 Exchange
The majority of Nelson Brothers investment properties are structured for 1031 eligibility. Professionally managed real estate can offer a terrific exit strategy for highly appreciated equity that allows investors to defer all capital gains and recapture taxes while alleviating the hassles of managing properties or dealing with tenants. In addition, Nelson Brothers properties are designed to be turnkey investments. With due diligence, property acquisition and the loan already in place, many investors turn to Nelson Brothers for the possibility of a timely close on their 1031.

Focusing on What's Important to you.

What are you looking for?

Tax Shelter, Cash Flow, Appreciation, Retirement Planning, Diversification

What can Nelson Brothers do for your financial future?

At Nelson Brothers Professional Real Estate LLC, we invest in student housing and assisted living facilities throughout the country. We seek properties that we deem to be well located but that may be in need of renovations and/or improved management.

Discover the tax benefits of 1031 Exchanges.

Keep your money potentially growing for you. We want to help you. What do I need to know about 1031 Exchanges?

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