The process of buying our value-add properties includes, of course, identifying how the value will be added.  We buy properties at which the identified upside will be primarily captured through effective management.  This includes setting a new standard at the community, advertising effectively to future residents, cleaning up the resident base, collecting income from additional sources and fees, negotiating service contracts, and much more to increase income and decrease expenses.  On top of this operational upside, we like to buy deals where we can implement certain physical upgrades to juice additional value.  From upgrades as simple as painting the exterior and adding new signage, to more intensive ones such as converting unleasable to leasable space, these value-add strategies are assessed upon identification of the property.  This is an integral step in molding our offer price – as we determine how much value we’ll be able to generate, and how much it’ll cost to get there.

Our operational strategy continuously evolves at each asset, as we receive feedback from the market and our community.  Our intent is to maximize value in a minimal time period.  This not only optimizes cash flow, but positions us for opportune exit strategies to maximize returns for our investors.  While we don’t have control over federal economic policy, we do have control over the net operating income of our properties.  If we can operate with maximum net operating income, we’ll always be perfectly positioned to take financial action, via refinance or sale, when the economy will reward it most.