What is a Value Add Opportunity in Real Estate?

When you delve into the world of Real Estate syndications, you will often come across deals labeled as “Value Add” deals, but what does that actually mean?

Value add deals, as the name suggests, are properties where the new ownership group could go in and add value/force appreciation to the property by making physical or operational improvements to the property. 

There are many ways to increase the value of the property. The ultimate goal in any value add deal is to implement different strategies to increase the Net Operating Income, which is the net income after subtracting operating expenses.

Commercial real estate is valued based on the current and future Net Operating Income (NOI) potential. The higher you can push the Net Operating Income, the more value your property will command at the time of resale. 

If you are interested in looking at future Real Estate investment opportunities to invest passively in deals alongside us, click the link here to schedule a call to be added to our Model Equity Investor Club where you will get private access to limited investment opportunities as they become available! We have nothing to sell you on the call, it will be completely free with the intent of answering any questions you may have about passively investing in Real Estate.

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