Today we're talking about value-add investing.

What is value-add? Value-add is looking for opportunities to add value. And It's a really common strategy for investors that are in the growth phase that are looking to invest, time, resources, energy, capital, blood, sweat, and tears, to take the value of a piece of real estate to a point that's higher.

Value-add real estate is my favorite because if you do it right, and if you're diligent and you're patient and you pick the right assets, you can get returns that are well above 20 to 25% IRR. I have clients that I have helped make 50% to 100% annually on their money in value-add deals.

And the cool thing about value-add, and the reason that I like it is because you're cash flowing from day one. Value-add properties, typically not always, but typically are occupied.

I consider value-add to be different than a renovation. Renovation typically means an empty or vacant property. Value-add is just an opportunity to increase the income.

[00:01:19] Indicators of Value-Add Opportunities

[00:03:03] How is Value Created?

[00:06:00] Increasing Revenue

[00:06:50] Decreasing Expenses

[00:08:46] Financing for Value-Add Properties

[00:10:10] Have a Plan in Place Prior to Sourcing Debt

[00:15:30] Realize the Value You Have Created

[00:18:21] Financing with Evergreen Capital

Check out my blog post "27 Ways to Add Value to Your Multifamily Property" It's all about value-add tactics, even little incremental ones. 

If you're looking for financing for a real estate investment check out Evergreen.LLC. 

If you're looking for more training, coaching, or other resources, check out my website, TrevorCalton.com.

Thanks for tuning in! Good luck out there and have a great day.