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It takes years of experience to become an expert at due diligence leading up to closing and then implementing a value-add strategy through construction, renovation, and repositioning.
In this episode, Wayne talks to Jorge Abreu, CEO of Elevate Commercial Investment Group and owner of JNT Construction. Jorge is a full-time active and passive multifamily real estate investor with 1,720 doors on the general partner side and more than 1,400 doors on the limited partner side.
Topics on Today’s Episode:
- Due Diligence Inspection Process:
- Gather information
- Schedule due diligence
- Hire professionals and manpower
- Inspect each unit
- Outsource leases to third-party property management company
- Inspection Tools: Software apps (HappyCo), phones, tablets, and power packs
- Most overlooked due diligence aspects and issues include:
- Drainage
- Plumbing and Sewage
- Storm damage
- Retrade or Renegotiate? Goal is to not retrade, unless issue is found, but not disclosed
- Cost Per Door: Ask a lot of questions to get accurate numbers to make appropriate offer
- Property Must-haves: Rebranding depends on budget and reputation for curb appeal
- Full Renovation Costs: From $5,000 for affordable housing to $10,000 for all inclusive
- Competent Contractors: Effective communication of change orders is critical for success
- Risk Management: Safety first—insurance coverage is necessary in case of claims
- Why actively invest? Transform properties to build up community, portfolio, and wealth
- Why passively invest? Returns and tax benefits are positively great
- Equity and Experience: If you need help, seek partnerships and teamwork
Links and Resources:
Jorge Abreu’s Email
Jorge Abreu on LinkedIn
Elevate Commercial Investment Group
JNT Construction
HappyCo
Wayne Courreges
Free Passive Investor eBook by Wayne Courreges
The Untold Stories of Real Estate Investing Podcast
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