Investing in Value Add Multifamily Projects to Turbo-Charge Returns

What does it mean to invest in a value add deal? Should I invest in a value add multifamily real estate deal?

A value add multifamily real estate deal is a deal in which a property is purchased and then through either physical improvements or management improvements (or both), the performance of the property and resulting net cash flow is substantially improved over a relatively short period of time.  

Whether you should invest in a value add real estate deal really depends on the level of comfort that you have with doing these types of deals yourself or the experience level of the investment firm you are working with. If you don't have experience implementing this type of business plan in the multifamily real estate world, I strongly recommend that you invest passively at first with an experienced investment firm until you become familiar with the process and feel confident that you can do it yourself.

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