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Updated over 4 years ago,

User Stats

39
Posts
10
Votes
Jimmy Hung
  • Rental Property Investor
  • Placentia, CA
10
Votes |
39
Posts

How to obtain 10% forced appreciation - 7 years 7 figures

Jimmy Hung
  • Rental Property Investor
  • Placentia, CA
Posted

I read Brandon's book: 7 years 7 figures and I think this is a great read and really breaks getting to 7 figures into something really tangible. The only thing that wasn't really clear for me was how to create a 10% forced appreciation. I know value add is one way, and as you get to apartments, you can create that through NOI, but for a new real estate investor who doesn't know how to discover value add, and buying a quadplex, what other methods are there?

Using Brandon's example of a 4plex worth 100k, you buy for 80k and then force 10% appreciation for a value of 110k after the first year. Is the property's ARV really 110k initially and the jump from 100k is the rehab to bring it to market comps? So then you're really looking for a property with a discount of around 72%?

Any help to shine light on this would be greatly appreciated.