I always love talking to my good friend D’Arcy McConvey. As a colleague of mine at Greybrook Realty Partners, D’Arcy talks about how investing in large scale value adds is a great way to make money and use it as a tool to provide for your loved ones.Making money is something we all strive to do in life. However, making money doesn’t always give you a great purpose in your life.
In this episode, I talk with D’Arcy about how he got into investing in large-scale value adds and what he likes about it as a business venture. The father of three looks at investing as something that he can do to show his boys that working hard pays off.
D’Arcy explains that investing in large scale value adds is residential, for the most part. You take old, vintage apartment stock, and do in-suite renovations such as countertops and a new coat of paint. Basically, making the old apartments look a little more modern on the inside, but still keeping the vintage feel from the outside. To make that large scale, you would have to buy multiple buildings with multiple units in each.
The strategy is fairly new and has yet to reach across all of Canada, but it is something that brings more value to properties on a massive scale. You can make money by increasing the rent to the tenants in line with the increased property value. Once you have completed the renovations to the units that need it, you can turn around and sell the building to a pension plan of a real estate investment trust, which will continue to give you income coming in.
If you’re looking to get into the world of modernizing old apartments and want to learn more about how that can make you money on a large scale, check out this video to learn more about D’Arcy’s story and his tips for this strategy.