With the right approach to your value-add strategy, you can be sure that your dollars are being well spent, you’re up to speed with your competition, and that you’ll lease up faster! Today on the show, Kyle interviews Gary and the two talk shop about best practices for value-add! It’s important to start your value-add process from the very beginning, and Gary tells us that he’s already thinking about it from the time he receives the EOM. Another great tip Gary mentions is to keep touring your comps, even after a deal closes. Constantly assessing metrics like ROI and staying in the know about where you sit in relation to your competitors is vital! Equally important is how to know when to deviate from a value-add plan, and our hosts have a few golden nuggets to share in that regard. Gary also suggests that investors should focus on exterior renovations first, and shares a few of his top-performing cosmetic additions, such as billboards, paint jobs, and amenities. Lastly, we get into some ways that you can know whether your value-add strategy is working, and Gary lists a few very clear indicators, such as if you’re successfully bumping rents! Tune in for some amazing pointers for your next value-add strategy today!
Key Points From This Episode:
- Gary’s entrepreneurial childhood and road into real estate investing with Kyle.
- The beginning of a value-add strategy starting with the EOM, comps, and pictures.
- Typical players Gary involves in his value-add strategies.
- Gauging comps and the current environment, and when to deviate from a value-add plan.
- Constantly watching comps and other facets of asset management.
- The three most impactful strategies for getting tenants: signage, paint, and extra amenities.
- How to assess a value-add strategy and tell it’s working: rent bumps and conversion rates.
- Being vigilant by tracking data and reassessing return on investment constantly.
- Gary’s asset management superpower: being a numbers guy.
“You're constantly evaluating. You’re dealing with market conditions, and being able to pivot is so important to your business plan.” — @garylipsky [0:04:17]
“We push our property management team to provide the best customer experience for our tenants and the best investor experience for our investors. That means we’re constantly staying on top of all the facets of asset management.” — @garylipsky [0:05:00]
Links Mentioned in Today’s Episode: