BiggerPockets Real Estate Podcast The Right Way to Do “Value-Add” Real Estate in 2024
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Oct 14, 2024 Tom Shallcross, a seasoned real estate investor from Chicago, shares his secrets to succeeding in value-add investing. He highlights innovative strategies that help him secure lucrative deals before others even see them. Tom dives into why he shifted his focus from C-class to A-class neighborhoods, and reveals how he navigates renovations to significantly boost property value. With a proven track record of six-figure flips, he emphasizes the importance of building strong networks and adapting to market demands for sustained success.
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Neighborhood Pivot
- Tom initially invested in C-class neighborhoods, aiming for high returns with low entry points through BRRRR strategy.
- He later pivoted to A-class areas, recognizing his skills were better suited for full gut rehabs.
Partnership Dynamics
- Tom focuses on acquisitions, marketing, and funding, leveraging Deal Machine for finding deals.
- His partner, a general contractor, manages the rehab phase of their projects.
Deal Sourcing Strategy
- Tom networks extensively with brokers and wholesalers, building a reputation for closing deals.
- He also offers agents the listing on the back end, incentivizing them to bring him deals pre-market.