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In this episode, Scott is joined by Jennifer Champion and Christine Traynor to discuss value-add strategies for multi-family apartment buildings. The hosts share their active investing experience and explain how to force appreciation through strategic property improvements and rent optimization.

Key Timestamps: [0:00] Introduction to Value-Add Multi-Family Investing

• Focus on forcing appreciation vs. just cashflow
• Why controlling income and expenses matters in multifamily
• Predictable refinance outcomes

[2:30] 💰 Forcing Appreciation Strategy

• Raising rents to market value
• Controllable income and expense factors
• Difference from single-family appreciation methods

[4:15] 📊 Real World Case Study Example

• $1.5 million purchase price
• $200,000 renovation investment
• $2.1 million stabilized value
• 75% LTV refinance at $1.57 million
• Creating infinite returns with zero capital remaining

[7:00] 🏦 Understanding the Two-Loan Strategy

• Bridge loan benefits (interest-only payments)
• Takeout financing for long-term refinancing
• CMHC standard and MOI select options
• Higher loan-to-value possibilities

[9:30] 🌍 Market Selection Considerations

• Landlord-friendly markets like Alberta
• Challenges with rent-controlled markets
• U.S. market opportunities for this strategy

Key Concepts Covered:

Value-Add Strategy Fundamentals:

• Forcing appreciation through property improvements
• Raising rents to market rates
• Creating predictable refinance scenarios
• Achieving infinite returns through strategic refinancing

Two-Loan Structure: Bridge Loan Phase:

• Interest-only payments during stabilization
• Lower carrying costs during renovation period
• Short-term financing solution

Takeout Financing:

• Long-term conventional or CMHC financing
• 5-year terms available
• Access to created equity
• Higher loan-to-value options

Investment Mathematics: Real Example Breakdown:

• Initial investment: $1.5 million purchase + $200,000 renovations
• Total invested: $1.7 million
• Stabilized value: $2.1 million
• Refinance proceeds: $1.57 million (75% LTV)
• Capital recovered while maintaining ownership

Market Selection Criteria: Ideal Markets:

• Landlord-friendly jurisdictions
• Ability to raise rents to market rates
• Limited rent control restrictions
• Strong rental demand fundamentals

Challenging Markets:

• Heavy rent control regulations
• Limited ability to increase rents
• Restrictive landlord-tenant laws

Strategic Advantages:

• Tax efficiency (appreciation vs. taxable cashflow)
• Predictable returns compared to single-family
• Scalable strategy for portfolio growth

Important Considerations:

• Calculate closing costs for both loan transactions
• Factor in all fees and expenses
• Ensure market fundamentals support strategy

Resources Mentioned:

• Book A Call With Jennifer
• Book A Call With Christine

Important Note: This strategy requires careful market analysis and proper financing structure. Investors should

Book A Strategy Call With An Expert On The Team

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