There is, indeed, a value to value-add properties. In today’s #Highlights episode, we feature our conversations again with real estate entrepreneurs Jeff Schechter and Sakar Kawle. The two detail what value-add properties really are and how this can be an advantage for you.
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Jeff talks about how his curiosity for internet marketing and real estate led him to his current business which is rehabbing properties. Meanwhile, Sakar walks us through his entry into real estate, talks about his successes, gives his thoughts on the current climate of real estate, and shares valuable tips on multifamily, syndication, and value-add properties. Enjoy the show!
Key Points From This Episode:
- Jeff shares his journey in the real estate industry.
- The key to Jeff’s success has been in systems and he elaborates how this helped him grow his business.
- How did Jeff learn from making mistakes in the beginning?
- The two things that equate to success in a real estate investment.
- The story of how Sakar transitioned into the world of real estate.
- Hear about how he methodically and radically scaled up his personal portfolio.
- Sakar talks about the difference between value-add properties to capital improvements.
- Sakar talks about the things he is focused on right now.
- How Saker is weathering the storm?
“Once we know exactly what our costs were and all that stuff, we can make a fair profit. We can get to some fair numbers for the investor. It puts us on the hook to make sure that the end price is something that’s attractive to the end investor from an ROI standpoint. It puts the responsibility on us.” – Jeff Schechter
“There are only two things that equate to success in a real estate investment. One is you’ve got to have a property that’s in good condition. Secondly, you have to have a happy tenant because if either one of those is out of whack, you are going to have problems.” – Jeff Schechter
“Now, it’s all about: let’s get our budgets right, let’s make sure we are taking the estimates correctly from let’s say the contractors or let’s network with a few more property managers and understand how the assets will perform, what’s our rank bumps if any you are seeing.” – Sakar Kawle
“So anything that you can do perhaps to weather the storm right now and then see how things come out and then after like let’s say 18 to 24 months, you want to revisit and say that, ‘Okay now, I am going to jump on some of the expensive CAPEX improvements that I have to do.’” – Sakar Kawle
Links Mentioned in Today’s Episode:
About Jeff Schechter
Jeff Schechter aka “Shecky” has had the entrepreneurial bug his entire life. He started his first business right out of college, and over the years been involved in numerous business ventures.
His love for real estate investing began in the 1980s when he rehabbed 5 of his own residences before the term “house-hacking” even existed. Since those early days of torn-up kitchens and bathrooms, he’s bought and sold many properties and is an active investor to this day.
In addition to investing, he operates a private consulting practice. He thrives on helping people realize their full potential…not just in business and investing, but in all aspects of life.
About Sakar Kawle
Sakar Kawle grew up in India before moving to the USA in 1997 to study MS at Clemson University. After his studies he cultivated a strong career, being certified in J2EE architecture and working for companies like Sun Microsystems, making six-figure salaries. Yet, his professional life fell into crisis after a corporate layoff. At this point, he decided to take his life into his own hands. Watching infomercials on TV in the late 90s stalked Sakar’s intrigue for the real estate business. After buying his first house, he went on to buy several others. Today, his personal portfolio consists of 200 houses and mid-sized apartments, and has a controlling interest in 800 units in Texas.
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