Value Add Investing | #shorts
00:00:00.000 | What I like to do is I like to buy properties that you can immediately bump up the value,
00:00:03.840 | and then it goes up gradually from there, right? So imagine you buy, let's go simple math, right?
00:00:08.080 | You buy $100,000 property that you can just make look a little bit nicer, and now it's worth 150.
00:00:13.760 | Maybe you got to put a little money into it or whatever. Let's say now it's worth from 100.
00:00:16.720 | Now it's worth 150. Well, now it appreciates from 150 upward. It's not starting at the 100. So you
00:00:22.640 | immediately started to this new high level, and then it goes from there. So that's one of my
00:00:27.280 | favorite strategies. We call that value-add investing. It's where you immediately add value.
00:00:31.760 | That is not what REITs do, and that's why REITs get a lower return. It's because REITs
00:00:36.000 | typically will just buy a property that's already there, and they're just banking on
00:00:39.680 | 3% per year rent raises to make all of their wealth.