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Value Added Investment Opportunities

Value Added Investment Opportunities

Everyone has heard of a fixer upper. Many investors are looking for hidden off-market properties with the potential to increase its value over time. Applying this concept to private equity real estate is known as value added investing.

Value added investors take on more risk in order to attain higher returns. The return will come in the form of appreciation. Many wait a significant amount of time before gaining appreciation and investors may not see a return for at least 2-3 years.

San Francisco’s median sales price is $1.6 million. Homes listed under the $1 million range are noteworthy. Opportunistic properties often have little to no cash flow at acquisition but have the potential to produce a tremendous amount of cash flow once the value has been added.

Value added properties may have the potential to expand the square footage by adding an extra bedroom. You can also create an additional dwelling unit that includes a small kitchenette and bathroom, which is perfect for an income producing unit. 

Oftentimes, these properties require physical improvements and may be rundown due to owners lacking money to make the improvements. Landlords and investors could also decrease vacancy rate in a multi unit building or increase rent when there is a change in tenancy. 

With the right physical upgrades, management, and effective marketing strategy, investors have the potential to achieve high returns. It is important to form a relationship with a real estate agent who knows your city and has access to the best opportunities. Many of these properties may be undergoing upgrades and repairs, and can be purchased off-market.

Value Added Investment Opportunity in San Francisco

We currently have a value added property listed off-market at 520 28th Street. We call it the Noe Valley Jewel! It is a diamond in the rough, great potential to make it your own and double the value. Or, move in as is and enjoy all that the neighborhood has to offer. 

The current remodel taking place includes new flooring, stainless steel appliances, custom lights & painting, and in-home laundry. The charming hilltop retreat is currently 1204 sq. ft. per architect and sits on a 2850 sq. ft lot. Now comes the exciting part – The 2 bedroom/ 1 bathroom home has approved site plans for a 2 level, 3 bedroom / 2.5 bathroom with a 2 car garage. This approved remodel would add an additional approx. 3176 sq. ft., total 4,385 sq. ft. The garage entry would include an elevator to the home.

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Cash Offers with Concierge Service "Keller Offers"

We are excited to announce that Keller Williams will be teaming up with OfferPad to buy and sell more homes with a new concierge concept called Keller Offers. Keller Williams agents will undergo certification to become an iBuyer agent. Agents who know sellers who are looking for all cash offers will be referred to Offerpad. The company will then flip the home within a week to 10 days and enlist Keller Williams agents to market the properties. The concierge program will be tested in Arizona and Dallas and may be headed to California soon. Keep an eye out over the next couple months as the program is expected to expand nationwide very quickly. 

Are you a serious investor or thinking of investing in real estate? Contact us to discuss your plans. We have helped many clients achieve their financial goals with value added investments. We would love to present you with great opportunities that will put money in your pocket too. 

For more information or to talk more about your real estate needs contact Mia Takami | 415.728.2596 | mia@miatakami.com

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