Value-add is a term used by nearly everyone in the multifamily space, but very few people understand what the term means. Fortunately, our guest today, Jorge Abreu’s superpower is adding value to multifamily investments. In this episode, Jorge takes us through various aspects of value-add properties.
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He begins by defining the term because without understanding what it means, you cannot know what kind of property you’re investing in. He also provides an overview of some things to look at to see whether a property is a value-add or not. Having a checklist is extremely helpful not only to understand what the costs will be but also to see whether money is being predominantly spent on adding value or deferred maintenance. Jorge also stresses the importance of having a masterful team when working on value-add projects. This will put your mind at ease and allow you to get the most out of your investment. To hear about all of this and more, tune in today!
Key Points From This Episode:
- More on Jorge’s background and why he transitioned from single to multifamily investing.
- How Jorge started his own construction company and how it has benefitted his investing.
- Find out what value-add really means.
- Why it’s important to understand if money is spent on deferred maintenance or upgrades.
- Jorge’s tips on things to look out for on a potential value-add property during due diligence.
- Some of the unexpected things Jorge has found in down units.
- How to prepare a team for an efficient value-add process.
- Find about what a recent business plan for Jorge’s value-add entailed.
- Jorge’s role in both his construction and the investment businesses.
- The hardest part of syndication, preparation for the downturn, and contributors to Jorge’s success.
[bctt tweet=”To me, due diligence is more than just due diligence. I mean, to me, it’s a time to figure out what it’s going to cost you exactly. — Jorge Abreu” username=”whitney_sewell”]
Links Mentioned in Today’s Episode:
About Jorge Abreu
Jorge Abreu is an active and passive full-time multifamily real estate Investor. He has 1,720 doors on the GP side and over 1,400+ doors on the LP side. Jorge currently has another 850 doors under contract on the GP side as well. He also owns a construction company that focuses on helping multifamily investors with their full renovations. He is based out of Dallas and currently owns properties in Texas and Oklahoma, but open to other areas as well. His strong points are locating deals, due diligence, executing CapEx, and raising equity. His goal is to reach 10,000 doors by the end of 2021 by creating strategic partnerships and implementing the proper systems in place for scalability.
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