What Kind of Real Estate Investor Are You?
Real estate gives you the opportunity to invest how YOU want to, in the types of assets YOU pick and choose.
Different styles of ownership allow you to either be unclogging toilets, or sitting back and collecting rent checks while on the fairway. The combination of various asset classes makes it easy to diversify your portfolio, and different ways of unlocking value to make investing in real estate a unique experience for all.
Traditionally, there are 2 investment styles: The first one is Value-add and the other is, what we like to call the “Manhattan” model.
The Value-add route is more management intensive and usually requires the owner to be somewhat hands-on. A simple way to add value is by “putting lipstick on a pig”. This could be painting the exterior, updating the façade, repaving the parking lot, or putting a new sign out front. Other ways to add value is by re-tenanting spaces and extending current tenants’ terms.
Ultimately, we want the NOI to increase as much as possible, which in turn increases the value of the asset for an exit plan.
The Manhattan model is all about long-term hold and really taking advantage of the benefits of real estate (depreciation, tax shielded income, etc.). As years of ownership go by, the value is naturally appreciating and you can make a nice chunk of change by sitting back and holding.
At the end of the day, there’s no “right” way to make money from real estate. Find your preference and run with it.
Adam began his career with Marcus & Millichap as a commercial broker, establishing relationships with some of the most successful real estate owners, operators and investment funds. He spearheads the acquisition and deal valuation activities while overseeing the transaction process from first glance to closing. Adam utilizes his finance background to get a full grasp on the economics of each asset and implements ultra-conservative underwriting practices to ensure minimum risk, as well as steadily increasing returns for partners.