How do you add value in a multi-family property deal and not look like a landlord who just kicks tenants out?
Toronto – if not Vancouver – is the most expensive real estate market in Canada, and with the place being so tenant-friendly, some might find it hard to buy and renovate a property there to rent out.
But worry no more because our guest today will share his own experience on adding value to a million-dollar property he’s bought! Tune in as we learn from Jesse Fragale.
Jesse Fragale is a commercial real estate broker and investor. He started investing in student rental properties a little over ten years ago. As his passion for investing grew, he began investing in single-family homes and condos. Following this, he transitioned to investing in multi-family apartments and that is his focus today.
Through his YouTube Channel, Podcast and Bigger Pockets Contributions, Jesse hopes to provide people with simple and straightforward real estate advice and education no matter what investing experience they have.
In this episode, Jesse discusses a case study on how they’re doing value-add to a multi-family property in Toronto.
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What you'll learn in just 19 minutes from today's episode:
00:54 – A backgrounder on the multi-family property Jesse is currently working on
02:20 – The value-add philosophy behind the property
05:43 – What could be the fair market value of the property?
06:45 – Are all units the same? What’s the rent that’s being charged?
08:39 – The biggest operational challenge and the way they approach it in accordance to law
13:58 – Before and after: What changed and stayed the same with the project
16:35 – Where Jesse and his team are currently at in that project
17:54 – Connect with Jesse Fragale
“Back to the aspect of not looking like just a landlord that is kicking people out is that we’re now in a pandemic. I’m sure it’s colder out by you and some of the cities closer to you, but it gets very cold in Toronto as well. And we’re coming in to the winter, and we’re in a pandemic, so this idea of going through our negotiation process with tenants, it just wasn’t the right time. We don’t want to start the relationship like that, especially in that environment.” – Jesse Fragale
“This renovation, they don’t grow on trees, so you have to not just pay and come to an agreement, but you’re putting out quite a bit of capital.” – Jesse Fragale
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