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What Are Value Add Real Estate Properties? - Achieve Academy

What Are Value Add Real Estate Properties? Find out more about the advantages, features, and how value-added real estate investing works?<br>

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What Are Value Add Real Estate Properties? - Achieve Academy

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  1. Value Add Real Estate https://achieve-academy.net/value-add-real-estate-properties/

  2. 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?

  3. 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.

  4. Value Add Properties: Why Buy Them? If you’re 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 you’re looking to buy a property that needs some TLC but doesn’t 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.

  5. 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

  6. 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).

  7. Join Us For A Daily 60-second Coffee Break Series For Passive Investing In Commercial Real Estate With James Kandasamy, The Best-selling Real Estate Author And Mentor.

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