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.
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
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
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- Focus on buying off-market deals that are outdated and in need of renovation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
Closing Segment
- 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
