The Real Estate Syndication Show WS1535: What Is Heavy Value-Add | Steven Gesis
Value-add is an investment strategy that we often hear in real estate. But, have you ever heard of a heavy value-add? Is this something that you should be considering doing in your business? What are the pros and cons of doing it? Find out the answers to these questions in today’s episode with Steven Gesis of Smartland.
In the second part of our three-part series with Steven, he talks about how to be able to serve your investors better. He also details what heavy value-add is, the benefit of doing it, and how you can do it on your project as well. Listen now!
Key Points From This Episode:
- Steven defines what a value-add is.
- Steven shares that when they buy for $50,000 per door per unit, they spend 50% on it for value-add.
- Why can Steven and Smartland be considered heavy value-add lifters?
- The way you do your underwriting can help you decide which value-add deals to pursue.
- What are the considerations to have before making a deal?
- Steven talks about the 112-unit, seven-story deal they had in 2018.
- Steven details what Smartland is and its focus.
Tweetables:
“So our value-add look is that we're looking at it from a holistic and complete turnaround of an apartment. So some guys say value-add, it's just going to be the common areas, the carpets, the lights, the signage. No, we're going full gauntlet here.”
“You have to consider that the entry barrier into multifamily is quite high simply because you have to have a closing track record with some sort of brokerage. And you have to develop that over a period of time.”
“What we really have to focus on buying, there's a lot of things that have to go right.”
“We're a market maker anywhere we're going.”
Links Mentioned in Today’s Episode:
WS1534: Scaling from Single-Family to Multifamily | Steven Gesis
About Steven Gesis
Steven is responsible for the strategic direction and performance of all teams within Smartland. As EVP Steven is the catalyst for all department directors to ensure the Smartland vision and Smartland standards are being implemented and adhered to. Prior to j
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