Investment Strategy

Business Structure

Covel Capital purchases distressed single-family residential property in Los Angeles County for the purpose of rehabbing and reselling for profit to other investors and to owner occupants.  Target properties will include REO foreclosures, pre-foreclosures and potential short-sales all selling for well-below market value.

Our company handles all aspects of property acquisition, property renovation, and property disposition.  Additionally, we have a strong team of investment advisors, industry professionals and licensed contractors to ensure each project is well-planned and successfully executed,  including qualified CPAs, real estate and title attorneys, as well as an assembled  team of real estate agents, inspectors, appraisers, insurance agents, etc.

Strategies & Policies

riAs our experience grows, we progressively move from lower-priced properties to higher-priced properties, where the profit margins increase, allowing us to generate more income from the same number of projects.

Covel Capital utilizes an array of strategies to achieve both its short- and long-term financial goals.  This includes a variety of property acquisition strategies, renovation strategies and disposition/selling strategies, all dependent on the specific target property.

The company purchases distressed properties far below fair market value.  By purchasing properties at this level, generating consistent and substantial profits becomes achievable.  Leveraging the local real estate market, we focus on acquiring distressed single family homes using a variety of means including but not limited to foreclosure auctions, bank REOs and local marketing.

Since it is likely that a high percentage of properties that the company acquires require some degree of rehabilitation prior to resale, we have established a core competency in evaluating the condition of a purchased home and improving it appropriately.  The level of rehab work for each property is highly dependent on the expected exit strategy for the property, ranging from minor cosmetic improvements to major structural overhaul and remodeling.

In order to stay flexible and profitable in today’s fast-changing real estate market, Covel Capital employs several different exit strategies, as necessary to complete our deals.  By having multiple available exit strategies, Covel Capital avoids holding properties longer than necessary, which would in-turn tie up valuable capital.

We aim to maintain a balanced investment strategy that uses a reasonable level of built-in equity and purchased equity to protect against decreases in property values.  At the same time, the company uses the leverage made available through traditional and creative real estate lending vehicles to maximize the asset acquisition and income production of the company overall.