Over the past decade, J. Kale Flagg and the partners of Von Vesting have purchased and sold over seventeen hundred properties. Von Vesting’s partners have proven their success in navigating the distressed property market for over 12 years. As well, J. Kale Flagg notes that Von Vesting has generated substantial returns for investors. This has been done by implementing management and oversight systems and tools to remove the guesswork and has equated to consistently stellar results, says J. Kale Flagg.
J. Kale Flagg reports that Von Vesting has:
- Returned equity investors over 20% IRR in nine (9) of the past twelve (12) years and over 12% IRR in all twelve (12) of the past 12 years
- Has worked with varying degrees of capital, peaked with total debt & equity of approximately $49,000,000 (in 2008)
- Achieved approximately 54% return to equity investors (IRR)(their best to date- 2008)
- Built $6mm rental fund (purchased, improved and rented approximately fifty two (52) properties for angel investor group)—currently in its 5th year of 7-year plan— estimated 12% non-leveraged cash-on-cash return plus approximately 17% equity
Rental Funds are a business J. Kale Flagg explains that Von Vesting understands, knows, and appreciates. According to J. Kale Flagg, Rental Funds are about purchasing with an eye on sustainable and growing rents, equity appreciation, and lowest improvement and maintenance costs possible. In other words, immediate cash flow while time provides appreciation. The flipping model on the other hand, reports J. Kale Flagg, is all about purchasing & improving intelligently while accurately forecasting the sales price that the improved property will sell at quickly. In other words: velocity. J. Kale Flagg notes that Von Vesting has extensive experience and success in both models.
In Q4 2011, reports J. Kale Flagg, Von Vesting launched a new Flip Fund, the American Redevelopment Fund, LP. Since inception, the Fund has raised approximately $2 million in equity and is in current discussion with several other investors who see value in these efforts, says J. Kale Flagg. The Fund will have a minimum of $3.5 million in equity by year-end 2012; J. Kale Flagg says this is an initial goal. The Fund is seeking $10mm to leverage its equity to maximize profits for investors.
J. Kale Flagg is the COO of Von Vesting, a documented, brick & mortar, professionally managed company that has a fully integrated operation to expeditiously source, purchase, renovate, and sell single-family residences in Northern California for profit. With an investment strategy that implements a minimum 10-15% ROI for every property and stresses velocity, Von Vesting is a leader in the redevelopment industry. An average elapsed time (from purchase to close of escrow for vacant properties) of approximately 95 days, enables that 10-15% ROI for each property to replicate approximately three times per year – earning the Fund a 30-45% IRR per year, with 50% of those profits going to investors. According to J. Kale Flagg, the firm has a simple investment philosophy: steal ‘em so you can give ‘em away. In other words, do the hunting to buy extremely low and sell within market comps, but at low enough prices to move inventory quickly to ensure a constantly revolving line of cash and profits.