Inventory Turnover, Rental Cash Flow Key to Real Estate Investment Success, According to Kinloch Partners, LLC Founder Bruce W. McNeilage

BOCA RATON, Fla., May 14, 2014 /PRNewswire/ -- Real estate investors who want to avoid a potential bursting bubble need to turn some of their inventory on a regular basis, while making sure current rental properties remain cash flow positive. These simple strategies have helped Bruce W. McNeilage and his firm Kinloch Partners experience explosive growth since its founding in 2011.

Speaking here today at the IMN REO to Rental, Single Family Aggregation Conference, attended by 800 leading decision makers in the residential real estate industry, McNeilage stopped short of saying the current real estate market was experiencing a bubble, but said investors need to protect themselves, regardless.

"We never own more than 25 houses at a time," McNeilage said. "As we are building new and as we are rehabbing existing homes, we are always selling a portion of our assets. It mitigates our risk against a real estate down turn and helps improve our cash flow."

McNeilage predicts the strong market will last longer for investors who buy vacant residential lots and build new rather than home flippers and funds that specialize in foreclosures or REO assets. McNeilage, through Kinloch Partners and other real estate investment partnerships, currently owns 250 pad ready residential lots in Greater Atlanta and another 50 under contract in Nashville and plans to sell several of these to two national real estate funds. But, the key to his success is making sure he and his partners are able to collect 95 to 97 percent of the rent due.

"The art to this business is collecting the rent.  Forget about anything else," McNeilage said.  "If you can't collect the rent from 95 percent to 97 percent of the tenants over a year you will fail.  Throw all your algorithms and MBA's out the window.  It is all about the money and that is where these operators will succeed or fail. Period."

Kinloch Partners, LLC first entered the Atlanta market in August of 2011 and has invested nearly $10 million to date. Earlier this year, Kinloch Partners announced plans to acquire lots in 14 additional subdivisions in Metro Atlanta and bring its total investment to nearly 200 residential lots, on which single family homes will be built in 2014 and 2015.

In late 2013, Kinloch Homes, an affiliate of Kinloch Partners, LLC, announced that it will build new homes in Fulton, Henry and Clayton Counties beginning in 2014, all on lots in developments where new construction has been lagging since the recession in 2009. Kinloch Homes, LLC uses 699homes.com as a website for their retail home sales.

About Kinloch Partners, LLC

Kinloch Partners, LLC is a real estate investment company formed in 2011 by childhood friends Bruce W. McNeilage and Christopher P. Zachary, who met on the playground at Kinloch Elementary School in Dearborn Heights, Michigan, in the mid-1970s.  The company specializes in providing a path to home ownership for new homeowners through new construction, home renovation or investment in financially distressed real estate properties.

SOURCE Kinloch Partners, LLC