Cap Rate is the equivalent of an equity multiple
If you increase the NOI of a 5% cap rate property by $1 per month:
The Cash Flow investor will see a $12 increase
The Value Investor will see a $240 value increase ($12/5%)
Value investors is looking to add dollars of NOI to grow
Manufactured Housing Communities and Storage Facilities have favorable business models where you can consistently add value
Manufactured Housing Communities value add opportunities: provide storage options, covered parking, sheds, increasing rents responsibly
Fund structure allows more diversification by being able to buy more assets with a single investment
Funds allow for more balance sheet which is vital for financing
Only reason you sell is because the market or property is impaired
Expert Pro Tip: Know what you value and find a structure and sponsor that aligns with your value
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