JF3031: Why Value-Add Business Plans Make the Most Sense | Passive Investor Tips ft. Travis Watts
The Best Ever CRE Show
00:00
C Class and D Class Apartments
Travis Watts: When you do value add as a business plan, it gives you a little bit of wiggle room and margin. Most of the deals I partner in are about 200 below market rents today. It's because they're older and outdated, but they have the potential to compete with more modernized buildings or amenities. So if we can just get through, let's say roughly 50% of our business plan, then we have a cushion to withstand some of the volatility,. Some of the uncertainty, the rising interest rates, things that are inevitably going to pop up like kitchen fires or tornadoes. He says he has always felt comfortable sleeping at night despite what could happen.
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