AAA318 Listener Question: Value Add vs Value Play?

Published: Nov. 25, 2019, 1 p.m.

In this podcast, you will learn:

  • Deal Play or a Cash Flow Play  - buy it for the monthly cash flow
  • Value Play or a Value Add - purchase a property to reposition it. Example: Single-family rental
  • Easier to analyze if it has the same tenant for some time.
  • Can analyze cost and expenses

Example: Fix and flip

  • Difficult to analyze
  • Can't see behind all defects
  • Often underwriting with a larger amount of money.
  • There is a chance that the market will go down

Holy trinity plus the bonus

  • 8th CAP
  • 12% cash-on-cash
  • 1.6% debt service coverage ratio
  • Bonus: Analyze total ROI over 5 years

Text eQRP to 72000

*To register your interest in the Putnam Green Property, visit Putnam.RealBlueSpruce.com (RealBlueSpruce.com/portal)

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