How I added over $750,000 in value in 18 months of ownership

116 Replies

congrats Henri!!

sounds like you did great on all fronts!!

Was curious of your type of tenants here and length of their leases??

I am a residential multi in single-family investor I would love to explore this space here in New Jersey.

One question, in the end how much money out of your pocket do you have in this deal?

Thx

Chris

@Henri Meli This is very inspiring, congratulations and thanks for sharing such a detailed plan of action. As an investor just getting started I’ve looked entirely at the residential market — rest assured that I’ll be looking at commercial as well now!

Henri, great story and truly an inspiration to a newbie like me. Thank you so much for sharing I wish you much success and many blessings. Please keep us posted on how the next stage of the process works.

@Chris Masons . Thanks and great question. My property is located about 1 mile from a major local hospital. The building has 9 tenants. The majority of my spaces are occupied by tenants in the Healthcare business. Some of the tenants customers commute back and forth to the hospital.  Physical therapist, Medical products supplier, health education for people with disabilities. 

A local bank's mortgage branch is also a tenant. An Engineering firm is a tenant and I have a barber/beauty shop.

Really nicely done @Henri Meli

That switch from SFRs to commercial is something I have considered but haven't really put the time into researching. 

Can you explain a little bit about how you market for tenants in this niche and by how much you've been adjusting leased space?

@Ryan Rea . Thanks and great question. 

Your best resource is bigger pockets forums, blogs, meetups, people, ... etc. 

In addition, I bought a couple of books, just to get another perspective.

And lastly, I worked with a commercial real estate agent and a leasing agent. 

If you are new in the field, make sure to really dedicate lots of your time just analyzing properties and get comfortable with the numbers.

@David Hagen . Thanks and make sure to take action. What's really attractive about value-add investing is that for every $1,000 you produce (NOI), you effectively add $1,000 / .o8 = $12,500 of value to the asset (assuming an 8 CAP here). You need to learn to become very good at seeing value, where others can't. It becomes your competitive advantage.

Good Luck !!!

@Rob Barry . Thanks and great question.

In regards to marketing to find tenants. I have a leasing agent. I pay him a commission to find me tenants. He is very knowledgeable, experienced and knows the area very well. He uses various means to find solid tenants. He works for a big local firm. He leverages Social media, his network, his connections, ... etc. I meet with him regularly and he provides me great insights into the local market. You need a great team to succeed. There is no doubt about it. 

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