Jeffrey Kale Flagg came to the American Redevelopment Fund after a long, successful career in sales, marketing, and business. After graduating from Yale in 1989, Jeffrey Kale Flagg worked in sales and marketing before co-founding ReGenesis International in 1997 and Stable Development, LLC in 2004. Today Jeffrey Kale Flagg answers some questions about Von Vesting, Inc. and the American Redevelopment Fund, LP, organizations he heads as Chief Operating Officer and General Partner, respectively. His partners in Von Vesting & the American Redevelopment Fund are Rich Von, who oversees all construction and development; and Tiffani Von, who as President of Von Vesting Inc., oversees all property acquisitions and dispositions. Michael Harman, CPA serves as Chief Financial Officer of both Von Vesting, Inc. and the American Redevelopment Fund, LP.
Q: What does the American Redevelopment Fund do?
Jeffrey Kale Flagg: Simply put, we source (find), purchase, improve and then re-sell single family residences throughout Northern California, Nevada and Arizona. Our business model is all about purchasing & improving properties intelligently (not spending too little or too much on improvement) while accurately forecasting the sales price that the improved property will sell at quickly. In other words: velocity. In the past ten years, the partners behind the American Redevelopment Fund have bought, rehabilitated, and resold more than 1,500 properties.
Q: What type of properties?
Jeffrey Kale Flagg: The American Redevelopment Fund focuses on single-family homes.
Q: The American Redevelopment Fund does this on behalf of investors?
Jeffrey Kale Flagg: Yes. We work on behalf of our investors, and ourselves. We share profit on a 50-50 basis with our investors.
Q: Why would an investor utilize the American Redevelopment Fund?
Jeffrey Kale Flagg: We take the guesswork out of re-developing homes, using the latest tools to provide proven results to those who work with us. But most importantly, we provide experience—this is a business for us, not a hobby.
Q: Does the American Redevelopment Fund invest in homes that are owned by banks?
Jeffrey Kale Flagg: We often purchase homes that we have acquired at a trustee’s sale, as well as MLS purchases that were bank owned REOs (real estate owned) properties or short sale purchases. The reason for our superior performance, in addition to skill set and experience, is wholesale versus retail—we only purchase wholesale—using our economies of scale, contacts and patience to do so.
Q: Do you find you have to do improvements on these homes?
Jeffrey Kale Flagg: We do something on every property. Sometimes it’s just a thorough cleaning and a new exterior or interior paint job, sometimes a lot more. Through careful due diligence at the outset, we avoid major repairs and renovations. Improvements are pretty much never structural but rather simple upgrades like new paint and/or carpet, landscaping and perhaps a roof, bathroom or kitchen refurbishment.
Q: I expect that American Redevelopment Fund also provides risk mitigation, as well?
Jeffrey Kale Flagg: Yes, we have a limited partnership agreement with our investors that limits our investors’ liability. We also carry insurance both on our properties and our contractors’ work. The most important risk mitigation strategy of all, of course, is experience—not making bad decisions, doing our homework. Extremely detailed title search and construction-needs assessments, for example, are critical to reducing risk and loss. You have to know what you’re looking for.
Q: In what states are your properties located?
Jeffrey Kale Flagg: Our properties are purchased, improved and resold in California, Nevada, and Arizona.
Q: Who are the partners in the American Redevelopment Fund?
Jeffrey Kale Flagg: The American Redevelopment Fund consists of Rich Von, who has been improving distressed properties for more than a decade; Tiffani Von, who has more than thirty years in real estate and business; Michael Harman, who has more than twenty years of experience in accounting and finance, and Jeffrey Kale Flagg, an entrepreneur and executive with more than twenty years of experience.
Jeffrey Kale Flagg also serves as chief operating officer for Von Vesting, Inc. Until 2011, Jeffrey Kale Flagg was chief operating officer of Stable Development, where he saw three major commercial developments to successful completion and stabilization.