Value add baked into the price?

[Charlotte Dunford]

This might be a silly question. I'm finding lots of parks with the value add already included in the price. For example - current value is at 500k, after value add (raising rent, decrease expenses), the value is projected to be

$1 million. Then they price it at $1.3 million while it's only worth 500k. My question is: if an unstabalized asset is going to sell for just as much as a stabalized asset, why would anyone even bother do an value-add?

[Rachel H.]

@Charlotte Dunford Very common among unmotivated sellers. Stay in touch and move on. If they become motivated in the future, then they'll change their tune. Hope that helps!