In this edition of Grant Cardone’s Real Estate Show the topic is on multi-family value-add.
When you are buying apartments, how can you add value to get more income? Tips to find the value-add in the deal include the following:
1.Rent Disparity— look for markets where there is a big difference in prices, where there are $800 rents in the ghetto and then jump to $3000 in other areas. Where’s the middle? Look for markets where there is big rent disparity.
2.Timing—there are certain times better than other times, and to know the timing you have to be in the marketplace.
3.Kitchens and floors— You don’t get a pool to raise the rent, but to make it easier to rent. Amenities make it easier to close the deal with people. Washers and dryers will cost money to install but will make it easier to rent for many people.
Would you spend $600 to get back $65 a month? Invest something to get something back.
Think about things people will pay for like parking or VIP trash pick-up. This is an incoming producing business so get creative. Don’t do baby steps in real estate. If you do, you’ll be punished. Save your money until you can go big. You need to be buying things that will produce income right away.
For more, tune in each Monday as Grant tackles your questions on anything and everything to do with real estate.