Value Add Real Estate

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Value Add Real Estate

• https//achieve-academy.net/value-add-real-estate-
  properties/

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Agenda

• What Are Value Add Properties?
• Value Add Properties Why Buy Them?
• The Benefits of Value Add Real Estate
• How Does Value Add Real Estate Investing Work?

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What Are Value Add Properties?

• Value add real estate is a term used to describe
  a real estate investment property that has the
  potential to be improved, or added value, over
  time. The primary goal of a value add investor is
  to fix up a property and sell it at a profit.
• Value add real estate properties are usually
  properties that have been foreclosed on or sold
  at auction by banks or mortgage companies. The
  value of these properties is often lower than the
  value of similar homes in your area because they
  need work before they can be sold to a buyer.

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Value Add Properties Why Buy Them?

• If youre looking for an investment property that
  will provide income but also give you some room
  for appreciation, then a value add property may
  be right for you. If youre looking to buy a
  property that needs some TLC but doesnt require
  much work, then a value add property may be
  perfect for your needs as well.
• Characteristics of a Value Add Real Estate
  Property?
• The property can be bought at a discount to its
  current market value.
• The property can be used as a rental or for
  commercial purposes.
• The property is located in a good area or nearby
  a busy street.
• The property has high potential for improvement
  and redevelopment.
• The property has good access to public utilities
  like electricity and water supply lines.
• The property has good access to transportation
  hubs such as airports, ports, railway stations,
  and bus terminals.

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The Benefits of Value Add Real Estate

• The benefits of value-added real estate are
  numerous.
• return on investment
• value-add properties can be easier to finance due
  to their higher perceived value
• there are fewer risks involved with these types
  of properties when compared to other types of
  investments 
• Low Down Payment Requirements
• Tax Benefits

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How Does Value Add Real Estate Investing Work?

• There are two basic types of value add strategies
• Existing Home Value Add Strategy  This type of
  strategy involves purchasing an existing home at
  a discount rate, making improvements to increase
  its marketability, and selling the property at
  full market value or higher than what you paid
  for it.
• New Construction Value Add Strategy  This type
  of strategy involves building new homes from
  scratch or rehabbing existing homes into condos,
  apartments, or townhomes (depending on local
  zoning laws).

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