Since 2001, Key Property Services has been buying distressed homes, rehabilitating them, leasing them, and selling them. The company has raised and liquidated 9 previous funds, generating 71.3% returns (IRR) on average. All of these funds produced strong profits – before, during and after the recession. Prior to the downturn Key sold rehabilitated homes to retail buyers, but since 2009 the company has been doing even better selling leased and cash-flowing homes to large investors. Key has purchased over 5,500 homes across 10 states, most of which have been renovated, leased and sold.
Featured Presenters:
Presenting: Simon Frost, Chief Financial Officer and Jeff Brock, Founder and Chief Executive Officer
Since 2001, Key Property Services has been buying distressed homes, rehabilitating them, leasing them, and selling them. The company has raised and liquidated 9 previous funds, generating 71.3% returns (IRR) on average. All of these funds produced strong profits – before, during and after the recession. Prior to the downturn Key sold rehabilitated homes to retail buyers, but since 2009 the company has been doing even better selling leased and cash-flowing homes to large investors. Key has purchased over 5,500 homes across 10 states, most of which have been renovated, leased and sold.
Key’s success has been driven by sophisticated acquisition underwriting processes, rapid and accurately-budgeted rehabilitation and leasing, and profit-maximizing sales. The company has invested heavily in acquisition tools to identify and buy properties at distressed prices, and in over 85 experienced employees who buy, lease and manage Key’s properties. In Key’s most recent fund, these employees renovated and leased all 1,412 homes within 86 days of acquisition on average, facilitating a fund IRR in excess of 100%. Key has close relationships with several large aggregators, selling more than 1,800 homes to Blackstone in 2013, and buying more than 1,500 for Starwood over the last 9 months. Key uses the retail value, and the known acquisition models of several large aggregators, to buy homes with an exit price in mind. Key sources homes through numerous channels, several of which are exclusive. Management believes they can deploy more than $100 million rapidly on high-yielding assets. Key is looking to raise $50 million of equity in its 10th fund and is offering investors a 15% cumulative preferred return, plus 40% of all distributions beyond this 15% IRR hurdle.
Mr. Jeff Brock, Founder and Chief Executive Officer
Mr. Brock is the founder and CEO of Key Property Services. He has been a pioneer in the single family aggregation and property management industry. Having started his business in 2001, he has more experience in single-family acquisition, renovation, property management and sales than almost anybody else in this nascent industry. Since 2001 through Key Property Services, he has acquired, renovated, managed or sold over 5,500 homes. Mr. Brock has served in every function within Key Property Services and as a result is able to drive efficiency in all areas of the business.
Prior to founding Key Property Services, Mr. Brock served as Senior Operations Manager at FedEx. During his 15 years in logistics, he managed multiple costs centers and developed processes used companywide to increase productivity and measure effectiveness. This experience and process expertise has been fundamental in driving exceptional, enduring returns at Key.
Mr. Simon Frost, Chief Financial Officer
Prior to joining Key, Mr. Frost co-founded and served as CFO of The American Home (“TAH”), a large single-family home aggregator. He helped raise and deploy over $220 million on more than 2,450 high-yielding homes. As a founder of TAH, Mr. Frost was involved in all aspects of operations, including helping to build the acquisition, renovation, leasing, property management, finance and tax functions. Prior to founding TAH, Mr. Frost was the Treasurer of Goal Financial, a $9B student lender. At Goal he helped to grow the company’s balance sheet by over $700 million, helped form and capitalize a bank holding company, led the acquisition of $23 million of commercial real estate, and facilitated the sale of the company after forming a tax-efficient ESOP.
Before Goal Financial, Mr. Frost served as the CFO of a commercial developer, Taylor Development and Land Company. Mr. Frost spent his early career in PricewaterhouseCoopers’ audit practice, and Smith & Williamson’s London corporate tax practice. Mr. Frost is a Washington, DC CPA, and has a BA and an MA in Economics from Cambridge University in England.
Mr. Keith Giddens: Chief Operating Officer
Mr. Giddens is responsible for overseeing all operations for the Company, including acquisitions, renovations and leasing. Mr. Giddens started working in the mortgage industry in 1992 as a residential loan officer and later held the position of Vice President at City Wide Mortgage based in Atlanta, GA. After leaving City Wide, he became part owner of Capital Resource Management, a company with a national footprint that specializes in residential loans. Mr. Giddens spent almost a decade consulting for lenders dealing with non-traditional lending in various markets.
Most recently Mr. Giddens served as Chief Operating Officer at KLM, and as the Regional Director of Teletracking. He has broad experience consulting for small to medium sized businesses, on process improvement and strategic resource management. His efforts have resulted in significant revenue growth and substantially improved bottom-line results. Mr. Giddens has a BBA from Kennesaw State University.
Mr. Ross Penrod: General Manager, Acquisitions
Mr. Penrod oversees acquisitions that often exceed 200 properties per month. He manages the continuous development of acquisition processes and infrastructure, and leads the procurement underwriting team. Mr. Penrod has helped develop procedures to streamline the accurate underwriting of thousands of properties at once, which has enabled Key to purchase several hundred homes a month.
Mr. Penrod has more than 15 years of experience leading day-to-day business operations. Having served as the CFO, Mr. Penrod has a deep understanding of the components driving returns. Prior to joining Key Property Services, Mr. Penrod was General Manager and CFO of a large commercial construction company. He has also served as the Marketing Director of Computer Education & Design, Inc.
Mr. Penrod serves as the President of Kory’s Helping Hands, Inc., a non-profit dedicated to helping foster families within their community. He has also served on the Board of Directors of LDS Family Services. Mr. Penrod resides in Kennesaw, GA with his wife and youngest son. He has four other married children and twelve grandchildren.
Mr. Kyle Sweet: VP of Renovations
Mr. Sweet manages the entire construction division and is supported by five field superintendents and seven office staff. His group currently renovates over 185 properties a month. During his seven years at Key Property Services he has managed over 3,000 projects. Mr. Sweet is also a strategic member of the acquisition team. Each month he and his team analyze the renovation needs of more than 2,000 auction properties over a fifteen day period. Mr. Sweet’s direct involvement in both acquisitions and renovations helps Key to control quality and efficiency, and maximize profitability. Mr. Sweet establishes and maintains direct relationships with suppliers, and negotiates and manages volume discounts.
Mr. Sweet started renovating homes with his father at the age of sixteen, and has continued to rehabilitate homes for most of his adult life. Mr. Sweet lives in Acworth with his wife and son.
RSVP deadline is past