Value Add Multifamily Investing Pitfalls and How to Avoid Them with Terrance Doyle
In this episode,Terrance Doyle discusses the value-add multi-family investment strategy. He shares insights on what sets his success apart from others who may not be as successful with his strategy, and also highlights common pitfalls and risks associated with the value-add strategy. Terrance also shares how he has set up his business to avoid these issues.
[00:01 – 07:00] Exploring the World of Value Add Multifamily Investing
- Terrance shares his background and how he started in value add multifamily investing
- Value add deals typically require a lot of construction and property management work
- Value add means doubling the rent, buying below market value
[07:01 – 15:26] Insights on Finding and Overcoming Pitfalls in the Multi-family Market
- Value-add deals require a lot of construction and property management work to be done
- Buy in neighborhoods with a lot of infrastructure and development going on
- Differentiating between the condition of the building and the location of the neighborhood is key
[15:27 – 28:34] Navigating the Changing Market
- Focus on buying off-market deals that are outdated and in need of renovation
- Build strong relationships with a small number of brokers that know their buy box
- Land prices may decrease in the future, providing opportunistic investment opportunities
[28:35 – 33:45] Closing Segment
- Quick break for our sponsors
- The first step to growing your wealth is tracking your wealth, income spending and everything else about your finances, you can start tracking your wealth for free and get six free months of wealth advisor. Learn more about Personal Capital at escapingwallstreet.com
- What is the best investment you’ve ever made other than your education?
- A 100-unit property he bought in Des Moines for $4 million
- Terrance Doyle’s worst investments?
- First company he started and the 2 tech companies he invested in early on
- What is the most important lesson you’ve learned in business and investing?
- Have empathy and invest in yourself
Connect with Terrance Doyle:
Invest passively in multiple commercial real estate assets such as apartments, self-storage, medical facilities, hotels, and more through https://www.passivewealthstrategy.com/crowdstreet/
Participate directly in real estate investment loans on a fractional basis. Go to www.passivewealthstrategy.com/groundfloor/ and get ready to invest on your own terms.
Join our Passive Investor Club for access to passive commercial real estate investment opportunities.
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“It’s better just to be patient and wait for deals to come to you and be able to play off of that advantage.” – Terrance Doyle
About our Guest
Terrance founded VareCo in 2014 and has since directed the growth of its portfolio through 1000+ real estate transactions and its current AUM of more than $80M. Terrance creates value through lasting relationships in construction, lending, and brokerage as well as in perfecting systems and processes in real estate.
With a passion for helping others add value to their own lives through real estate and for helping countless investors make the jump from single-family to multi-family investing, Terrance is featured on numerous media outlets and podcasts offering investment tips and property insights.
Outside of real estate, Terrance is passionate about his family. He and his wife, Julie, have two young children, Emilia and Noah. Julie and Terrance are active in their local church in addition to serving on the board of a local organization called Activ8 All-Stars which serves local children and families with disabilities.