252: 52 Lake Progress Update: Creating More Value with a Bigger Budget
When you're building a company and creating a culture, I think it's essential that we understand that nobody is more important than anyone else. Everyone on your team is a key component to your success, and whenever you get to roll up your sleeves and get your hands dirty, it's a great reminder of the roles that everyone has in that success.
There's also a huge difference between doing the bare minimum and going above and beyond. If done right, it doesn't just create better living experiences for your tenants–it can have a significant impact on your overall valuation.
Last year, we did a deal called 52 Lake: the Clifton Lakes Apartments on Lake Avenue in Cleveland. It's a very walkable area located right by Lake Erie. As we started to work on the building, we realized that we had the potential to create an additional million dollars in stabilized value but that we'd need to put more than double what we'd initially planned on CapEx to make it happen. On top of that, we also want these apartments leased, signed, and filled by the end of March to make it cash-flow positive on April 1.
I'm thrilled that we're now way ahead of schedule and on track to be pro forma a year in advance–despite going over budget by over $400,000!
In this episode, I break down why we went over budget to change this deal for the better. You'll also learn the most important thing you can do as a CEO to build relationships with your crews, inspire amazing work when you need it most, and develop a fundamental understanding of the work that goes into your deals.
Key Takeaways with Josh Cantwell
- The best thing you can do to get great work out of your property managers and crews.
- Why we saw value in going over budget on our CapEx with this project and where the money went.
- How to tell if a deal still works when you deliberately go over budget.
- Why you should walk every unit of your buildings.
- How we’re going to aggressively market 52 Lake to ensure that the building is filled by April 1, 2022.
Want the Full Show Notes?
To get access to the full show notes, including audio, transcripts, and links to all the resources mentioned, visit https://acceleratedinvestorpodcast.com/252
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