Value-add properties offer a great opportunity for you to increase your income. But, how do you uncover hidden value-add properties? In this Highlights episode, we look back at our conversations with Sarah May of Regency Investment Group and Andrew Cushman of Vantage Point Acquisitions.
How to Start Investing in Multifamily Real Estate
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Sarah shares a checklist on what you can do to add value to your property. She mentions interior renovations, providing a carport, and even chargeback utilities. Meanwhile, Andrew advises syndicators to buy value-add properties in the right market where people and jobs are moving in. Click the play button now and find out how you can unlock hidden value-add properties!
Key Points From This Episode:
- Why did Sarah opt for real estate syndication instead of fixing and flipping properties?
- What sort of properties does Sarah prefer to invest in?
- How to drive greater value addition from your real estate properties.
- A brief overview of the last deal that Sarah syndicated.
- What is the likelihood of coming across a deal where the owner is charging less than market rent?
- How did Andrew raise capital for his first syndication deal?
- Should you attempt to self-manage your real estate property located in another state?
- Is your renovation budget likely to shoot up if you invest in a property that has been lying vacant for a long time?
- Did Andrew attempt to renegotiate his buying price after discovering that the property required extensive repairs?
- Main factors that helped Andrew increase the value of his investment multiple folds
- Andrew reveals how partnering with the local community helped him immensely in his rehab efforts
- How did Andrew gain the confidence to syndicate a particularly difficult deal?
- What is the likelihood of finding a multi-bagger real estate deal in the current market conditions?
- Andrew reveals his methodology for discovering real estate properties with a hidden and unlocked value.
“We’re value-adders. So, we like properties that were built in the 70s, maybe the 80s. You know, they’re running well, they’re occupied, but they can just be taken to the next level. So, we like to go in, renovate the interiors, add some new modern-looking style, repaint the building. By doing that, we’re providing the residents with a better place to live. And, over time, we can raise the rents and increase the value to the property.” — Sarah May
“You’re managing the renovation so you don’t go over budget which is really critical on something that needs heavy lifting. And then, providing good service to the residents and partnering with the community.” — Andrew Cushman
Links Mentioned in Today’s Episode:
About Sarah May
Sarah is a native of Colorado and graduated summa cum laude from Colorado State University in 2007 with a bachelor’s degree in mechanical engineering. She later received a master’s degree in aerospace engineering from the University of Colorado in 2011.
Sarah spent 9 years working for Lockheed Martin Space Systems where she first worked as a propulsion engineer for the Orion spacecraft focusing on systems analysis and testing. She then transitioned to a business strategy where she evaluated new technologies and markets and provided strategic guidance to the senior executive team.
Besides engineering, Sarah has always been passionate about real estate and how investment real estate can help the average person reach their financial goals much faster than they can with a 401(k). She and her husband started Regency Investment Group in 2016 with a dual mission – to help educate people on real estate investing and to provide passive investment opportunities that don’t require investors to actively manage the properties. Regency helps investors experience the benefits of property ownership without having to deal with “tenants, toilets, and termites.”
About Andre Cushman
For over a decade, Andrew has been growing real estate investment businesses full-time. Starting off with single-family properties in the depths of the Great Recession, Andrew completed 27 single-family flips (purchase, rehab, sell), all of which were very profitable. In 2011 Andrew transitioned to the acquisition and repositioning of multifamily properties, acquiring a mostly vacant 92 unit property on the other side of the country as a first deal. That first property was eventually sold for several times its original purchase price, and Andrew now acquires B Class, value-add properties throughout the Southeast. In total, Andrew and his team have acquired and repositioned over 1,800 multifamily units to date. Outside of the business world, Andrew has been a certified alpine ski instructor and when not working in real estate enjoys surfing, backcountry skiing, and trying to not be outwitted by his two children.
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