Scott Jacobson from Onward Equity discusses creating investment value in property management. Topics include adding value through renovations, importance of resident care, challenges like rising interest rates and insurance costs. Emphasizes treating residents well for success in property management.
Renovating properties can create value for both investors and residents by enhancing living experience.
Balancing property renovations with market demand and tenant affordability is crucial for adding value.
Deep dives
Creating Value in Real Estate for Residents and Owners
A key focus of the discussion revolves around the challenges in property management and the importance of creating value for both investors and residents. By renovating properties to make them more appealing and comfortable, both parties benefit. Upgrading older properties to feel new and homely not only increases the value for investors but also enhances the living experience for residents, leading to a mutually beneficial outcome.
Inspiration for Real Estate Investing and Entrepreneurial Mindset
Scott shares how his interest in real estate investing was sparked by a mentor early in his career, shifting his focus from accounting to real estate. Embracing a mix of CPA discipline and entrepreneurial spirit, Scott discusses the importance of taking calculated risks and challenging stereotypes associated with CPAs. This mentorship significantly influenced Scott's career path and outlook on investing opportunities.
Adding Value Through Renovations and Balance in Real Estate
The conversation delves into the balance between adding value through property renovations while avoiding overspending. Scott emphasizes the need to consider market demand and affordability for tenants when planning renovations. By focusing on essential upgrades like kitchens and baths, along with amenities such as in-unit laundry or covered parking, property owners can enhance value for both residents and investors.
Navigating Challenges in Real Estate and Property Management
Addressing current challenges in the real estate market, the discussion highlights factors like rising interest rates and escalating property insurance costs affecting property values and operational expenses. Scott emphasizes the importance of taking a conservative approach to underwriting, considering the impact of market fluctuations on property investments. By adapting to market conditions and prioritizing tenant satisfaction, investors can navigate challenges effectively and create sustainable value in real estate.
Very few things are as important as where someone lives. Scott Jacobson of Onward Equity joins the podcast to discuss how to create investment value for both owners and residents, as well as some of the challenges investors face in today’s complex property management industry.
Value-added opportunities can include physical renovations and landscaping to create curb appeal. Scott also stresses the importance of treating residents with respect and care, since being responsive and attentive ultimately affects their overall experience and shows that you value their time.
Further, he talks about the primary challenges in property management such as rising interest rates, obtaining new deals, increasing costs for property insurance, and property-specific issues.