Episode 7

7 - Uncovering Hidden Opportunities in Apartment Building Investing: Tips for Real Estate Investors

In this episode of Get Real Wealthy Season 4, Quentin D'Souza talks about uncovering hidden opportunities in apartment building investing.

Quentin says that real estate investing offers many opportunities. To create value, you need to increase the net operating income, which is income minus expenses before debt. He adds that there are five hidden opportunities to increase net operating income. The first opportunity is to look for properties with below-market rent. He adds that taking advantage of the spread between current rents and projected rents can benefit the buyer. Rent control in places like Ontario creates a distorted market, making it difficult for new tenants and the production of new units. Therefore, when buying rental property, finding below-market rents with the potential for a rent increase is an opportunity.

The second opportunity is to look for properties that have been poorly managed, leading to disorganization and lack of repairs. This can present an opening for you to acquire the building, come in with a professional management company and solve these problems. The third opportunity is to look for buildings experiencing tenant management issues, where the owners or property managers are not addressing illegal activities, such as drug dealing, and not handling late payments or evictions properly. A skilled investor can purchase the property at a lower price, solve the issues, and achieve a better return on investment.

The fourth opportunity is to look for properties with poor records management. This can result in difficulty finding bills, leases, and other important documents. Quentin says you can take advantage of this opportunity by finding ways to solve the problem and make more money as a real estate investor. Lastly, he suggests looking for buildings with neglected maintenance, particularly those under rent control with low rents. The building owners have no motivation to maintain the property, leading to a rundown building. But if an opportunity arises to turn over the units and create value, it can be an excellent opportunity for you as an investor.

In conclusion, Quentin highlights that these hidden opportunities in apartment building investing, from finding below-market rent properties to solving poor records management issues, present great opportunities for investors. By identifying and addressing these opportunities, investors can achieve a better return on investment. To further assist in this endeavor, he recommends two books: "Property Management Toolbox" and "Filling Vacancies Toolbox," which offer valuable insights on creating value in buildings through effective management.


Links and Resources

·        Property Management Toolbox

·        Filling Vacancies Toolbox

·        https://www.instagram.com/qmanrei 

·        quentin@getrealwealthy.com

·        https://EducationREI.ca

·        https://GetRealWealthy.com

·        https://DurhamREI.ca

About the Podcast

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Get Real Wealthy
A Real Estate Investers Journey

About your host

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Quentin DSouza

Quentin D’Souza is a multiple award winning Real Estate Investor, and a trusted authority on real estate investing. He is an Ontario Certified Teacher and holds two university degrees, which includes a Master’s in Education. Quentin has appeared on local and national television and radio, interviewed in national publications, and has been a keynote speaker to large audiences of real estate investors. He owns a real estate portfolio in excess of $80 million dollars of assets under management across Canada and the US and transacted on 80+ properties since 2004. Quentin is the author of several books available on Amazon. He is also mentors real estate investors as the Chief Education Officer of the Education for Canadian Real Estate Investors and Durham Real Estate Investors Club.