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Investing Strategies

How the "Value Add" Can Make Your Deal

valueI'm sure you've heard the expression 'Diamond in the Rough'.  It refers to finding something of great value that others may have overlooked.

It's like that guy who shops at a flea market: He finds a painting, brings it home, cleans it up a little, and then has it appraised…

…only to discover that it’s a Leonardo Da Vinci original…

…and it's worth a gazillion dollars.

Wouldn't you like to be 'that guy'?

Well, real estate gives you lots of opportunities to be 'that guy'.

There are a ton of properties out there that other investors pass on.   Properties with some kind of problem that other people don't want to solve.

If you can solve the problem, you could turn a distressed property into a profit-maximizing machine! It could be your diamond in the rough.

chrisCue Chris Urso – Diamond Merchant

This is why we have called upon Chris Urso for today’s lesson.  In our previous four lessons with this wildy-successful multifamily investor, we learned:

(i) Why ‘Now’ is a great time to invest in apartment buildings

(ii) How to manage a portfolio of apartment buildings and residential real estate

(iii) The four misconceptions holding you back from buying apartment buildings

(iv) And the ideal ingredients for your first apartment deal

Today’s fifth lesson from Chris builds upon these previous lessons and shows you how to increase your return by up to 30-40% in apartment buildings.  Specifically, you will learn:

  • Two simple, low-cost rehab projects that can increase rents by $10’s of thousands per year
  • Five easy ways to dramatically increase cash flow from the property – without raising rents
  • Four ‘Hidden Gem’ expenses that you can cut ‘with extreme prejudice’ in order to put more cash into your pocket
  • One quick rule for determining whether a property improvement is worth doing

Yes, today’s video will definitely be a ‘value-add’ for your real estate education.  So sit back, relax, and enjoy!

From Chris Urso, Multifamily Maven…

{Mogul Elite: Download a transcript and MP3 of this lesson in the Power Pack tools for this lesson.}

 

Do It To It! Immediate Action Steps

Make a List – Make a list of all the ways to add value to a property discussed in the video. Can you brainstorm other ways to increase revenue and decrease costs?

Use Your List – Use your list as part of your due diligence when searching for properties to buy.  Think of ways that you might be able to increase the value of each property you visit.

Review Each Property You Own - Is there some kind of hidden value in each property that you may have overlooked?  What could you do today to put more cash in your pocket.

Increase the value – Increase the value of your properties.  Once you have your list – take action! Make the changes in your properties and start raising your profit!

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