3 Immediate Ways to Add Value to Your Multifamily Purchase

3 Immediate Ways to Add Value to Your Multifamily Purchase

1 min read
Matt Faircloth

Matt Faircloth, co-founder and president of the DeRosa Group, is a seasoned real estate investor. The DeRosa Group, based in historic Trenton, N.J., is a developer and owner of commercial and residential property with a mission to “transform lives through real estate.” DeRosa creates partnerships to finance select real estate investments and has a proven track record of providing safe, profitable investment opportunities to their clients.

Experience
Matt, along with his wife Liz, started investing in real estate in 2004 with the purchase of a duplex outside of Philadelphia with a $30,000 private loan. They founded DeRosa Group in 2005 and have since grown the company to hundreds of units in residential and commercial assets throughout the East Coast. Under Matt’s leadership, DeRosa has completed tens of millions in real estate transactions involving private capital, including fix and flips, single family home rentals, mixed-use buildings, apartment buildings, and office buildings.

Matt is an active contributor to the BiggerPockets Blog and has been featured on the BiggerPockets Podcast three times (show #88, #203, and #289). He also regularly contributes to BiggerPockets’ Facebook Live sessions and teaches free educational webinars for the BiggerPockets Community.

Matt authored the Amazon Best Seller Raising Private Capital: Building Your Real Estate Empire Using Other People’s Money. The book is a comprehensive roadmap for investors looking to inject more private capital into their real estate investing business and is a must-read for anyone looking to grow their business by using private lenders and equity investors. Kirkus, the No. 1 trade review publication for books, had this to say about Raising Private Capital: “In this impressively accessible introduction to a complex subject, Faircloth covers every aspect of private funding, presuming little knowledge on the part of the reader.”

Matt and his wife Liz live in New Hope, Penn., with their two children.

Education
Matt earned a B.S. in Industrial and Systems Engineering with a minor in Business from Virginia Tech. (Go, Hokies!)

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If you own any multifamily property, you probably would agree that investing in this type of real estate vehicle is more of a “marathon” than a “sprint.” That being said, there are ways to add value quickly (and effectively) to small and mid-sized properties over a short period of time to get you off on the right foot. In today’s video, I share 3 ways that you can add immediate value to your small or mid sized multifamily. These strategies will get you moving into the marathon of multifamily ownership.

3 Immediate Ways to Add Value to Your Multifamily Purchase

1. Rename the building.

Many larger multifamily properties and apartment complexes tend to have a name (“___ Lofts,” “___ Apartments,” etc.). When you acquire a property such as this, it likely has a prior name and pin drop on Google. Whatever reputation the prior owner had is going to show up for the building. This could be a big issue if a lot of people have complained on places like Apartments.com. You are no longer that owner, so make sure people know you are going to re-establish things. Make a new brand for yourself, starting with a new name for the building.

Related: 3 Quick Ways to Increase the Net Operating Income on Your Multifamily Property

2. Redo the common areas.

You could put in some bushes on the exterior, spruce up carpet on the inside, add fresh paint, and much more. Current tenants will appreciate it, and along with the new name, it will help establish a fresh feel. Prospective tenants touring the property will immediately notice the upgrades and get a great first impression.

3. Get the existing tenant base on your contract.

These residents’ contracts may have expired or may be expiring. You may decide to keep them at the same rent, but lock them down under your agreement. This can not only be important for working with lenders and while refinancing, but it also establishes your control over the property.

Multifamily investors: Have you used any of these strategies? What would you add to this list?

Let me know with a comment!