Nov 10, 2020
When multifamily investors think of value-add strategies, typically they are looking at interior improvements or new amenities. However, energy costs can be significant and is another area where expenses can be reduced, driving profits while helping the planet in the process. Investors can increase their NOI by using energy-efficient and sustainable materials.
“Heat pumps mitigate risk, cost the same as a gas or oil boiler, and give you the opportunity to transfer payment to the tenant,” says Dave Holman.
Dave is an investor, author, and environmentalist. His first major investment took place right out of college when he co-founded a multilingual retail chain in Bolivia, The Spitting Llama Bookstore and Outfitter, with the hope of improving the country’s social environment and ecology. Five years later, he entered the world of real estate investing with a mission to help residents, investors, and the planet.
Dave now co-owns 94 rental units in Southern Maine, working with investors, owners, residents, and contractors to help with energy efficiency, syndications, and property management. In addition to investing and brokering, Dave is the author of three books: Youth Renewing the Countryside, Coffee Smuggler, and Cyber Fire.
In this episode, we talk about why Dave started as a passive investor and lessons learned, why he moved into multifamily from single-family, and the benefits of incorporating sustainability into your multifamily business plan.
Partner: 1 Question Marketing Survey for New Event
Key Insights on the Value-Add of Sustainability for Multifamily
The keyword, to summarize how to do passive investing, is relationships.
You will encounter the most competition in the single-family rental (SFR) space
20% of all residential mortgages have had payments deferred or reduced by banks, yet eviction rates are low, which results in a total imbalance that can’t stand forever.
Heat pumps mitigate risk, cost the same as a gas or oil boiler, and give you the opportunity to transfer payment to the tenant
Partner: Download our Sample Deal Package
Bullseye Tips:
Apparent Failure:
Under contract for a $1MM building but with $5MM worth of renovations. I was ready to pull the trigger but realized everything would have to go perfectly to make any money, so I pulled out of the deal. That decision resulted in strong relationships with partners.
Digital Resource:
Genius Scan (scan any document with phone)
Most Recommended Book:
Investment Biker (Jim Rogers)
Daily Habit:
Play with my kids in the morning. Networking with smart people. Task delegation.
Wish I Knew When I Was Starting Out:
You can do tremendous things in the world by being a good landlord
Curious About Right Now:
Macroeconomics
Best Place to Grab a Bite in Brunswick, Maine
Little Tokyo
Contact Dave:
Dave’s Books: