Value-Add Strategies, With Jason Yarusi

Value-add multifamily deals can offer compelling returns for passive investors. However, not all value-add properties are created equal, and targeting the right distressed properties requires experience.

Jason Yarusi, Co-founder of Yarusi Holdings, joins the show to share tips and strategies on having success in value-add multifamily investing.

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Episode Highlights

  • The investment thesis for value-add multifamily properties.
  • What characteristics make a property a quality value-add opportunity.
  • How cap-rate compression has impacted value-add property values and overall investment strategy.
  • Challenges that can await operators of newly-acquired value-add properties.
  • Why exiting early, accelerating the time horizon, can be the best move for investors.
  • Which markets Jason likes for value-add assets.
  • What trends provide compelling signals for the upside of value-add multifamily strategies.

Featured On This Episode

Today’s Guest: Jason Yarusi

About The Multifamily Investor Podcast

The Multifamily Investor Podcast covers trends and opportunities in the multifamily real estate universe. Host Scott Hawksworth discusses passive investment offerings in the space, including direct investments, DSTs, opportunity zones, REITs, and more.

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Show Transcript

Scott: Hi, and welcome back to “The Multifamily Investor Podcast.” I’m your host Scott Hawksworth. And today we’re going to be talking about value-add strategies and all that entails. And joining me to offer his insights and share his story is Jason Yarusi who is the co-founder of Yarusi Holdings, and he has a lot of experience when it comes to multifamily and value-add specifically.

Jason, welcome to the show.

Jason: Hey, Scott, thank you for having me.

Scott: Well, thank you for being here. As I said, we want to talk about value-add. And, you know, you’re the co-founder of Yarusi Holdings. And as I understand it, you know, your company focuses on value-add strategies. Why do you like value-add as a multifamily investment strategy?

Jason: So, you can look at value-add in a number of different capacities, right? And typically, it’s both on the operation side, but also on usually the ownership or partnership side, right? And usually, it can go hand in hand, right? So, if ownership has not done a great job of managing the property, then the property itself is going to have a bunch of underlying opportunities to improve it.

And if you find the building is, of course, not performing well, it’s typically because of the ownership group of how they’ve run their process whether it basically just under a game plan or just under capital structure. So, we’d like that space because even if there’s said renovations done, there can still be multiple layers where you can go in and improve an asset above and beyond where it currently is to find value.

And where this can parlay is that back in the day, you know, we were in a number of different facets, a number of different businesses and we were looking for how can we improve or optimize businesses. And so whether it was the restaurant or bar world, or even opening and selling a brewery is that how can we create more efficiencies with our process.

And large apartment investing is typically the same thing, right? You’re looking at a business that’s not performing well or to the top level or top tier for which we feel it can and you buy that with the opportunity to improve it, right, to improve the revenue, improve the income stream of the business. And so we basically parlay that from which we’ve done in the past into multifamily and that’s been a great step for our company here at Yarusi Holdings.

Scott: Absolutely. And I kind of want to tease that out a bit because, you know, you, again, on your website you state… I want to… I quote, “You acquire properties that have been badly maintained and mismanaged.” And when you’re evaluating a potential acquisition that sort of fits that profile, that aspect, what are the aspects that make it a good value-add candidate, if you could kind of tease that out of it?

Jason: Sure. So, you can look at a number of different things. Right now we’re under contract to buy a property down just outside of Atlanta, Georgia. The property states that it’s 80% renovated. Right? And so if you look at that just in the wording, you say, “Oh, well, there’s not much value left to be done.”

Well, their renovation package is basically substandard, right? So, it’s substandard to what the market warrants and what we feel we can do with it. Plus, we have other avenues to really maximize the income including adding washer and dryer hook-ups in there which we know based on assets that we have in the sub-market that we can gain another $150 per unit just by doing that approach here.

So, when we look at the buildings, there’s one, the easy part is that the interior renovation status is not up to par, not being maximized. Maybe they’ve done all just classic renovations, you could take this up to some, whether it be silver or lead or gold package here, or even standards of packages here that you can maximize, basically the return on income and basically for your dollar spent for your return from that part.

Then you can look at just the overall community feel. Is the parking lot in good shape? Are the windows, original windows, single-pane windows that have no R-value left? And so you’re having a ton of utility usage or utility usage wasted here. Is there a way to optimize a water savings plan where it’s all original toilets and you can go in there and find your savings by replacing toilets or adding aerators to faucets and showerheads?

The course welcome package here, is it lit up? Can you add lighting? Can you change over to LED lighting so you can cut back and cost parameters there? Is there a way to add in other welcoming features that can make this more like a community, a place to live and not just like a place to pass by?

Because as you look for your renovation strategy and your improvement strategy throughout there’s two tiers, right? It’s what you’re doing that you can track, but there’s also a point here that if you say, “Well, can I make this a better place for people to live?” And what that parlays into here is that when people are living in a place that they want to call home, well, they’re going to be more inviting to themselves to want to treat the property well, but also stay longer because you don’t realize you’re looking at it, but your biggest cost is, of course, vacancy and the time it takes to refill that unit and the cost to do that, right?

And so if you can parlay that out by basically maximizing not only the value through your renovations, but also the experience for the tenants, you’re going to find is going to be a nice plug and play to really maximize across the building itself.

Scott: A hundred percent. And I like what you sort of pointed out about that property that you’re working on. It says 80% renovated, but then, you know, you’re looking at it and you’re like, “You know what? The renovation is not up to our standards.” I think that then connects to when you’re talking about growing that income. Maybe people are doing the renovation and it’s not really to standard and then they think, “Well, I’m going to now be able to get this post-reno,” you know, ask for these rents, and you aren’t going to get there.

And so what you’re saying is you can capture that. You can say, “You know what? We’ve got our standards. We’ve got our… We’ve worked on these properties in the past and we can get there and we can get those rents,” right?

Jason: Sure. Yeah. And you can ask, “Well, why wouldn’t they take it up to the status of the market?” Now, I actually talked back to our first investment, right? So, our first investment was a 94 unit in Louisville, Kentucky. And at the time of purchase, we had such a gap in terms of, of course, market rent and the actual rent of the property. And we had $150 to $200 premiums that we could charge just by going to a classic unit.

However, if we renovated the unit and added in, say, granite countertops or marble countertops or what have it, well, that tenant base at the time would not pay us more for that compared if we just had formica countertops, right? The path of progress hadn’t hit it yet. So, doing that extra renovation didn’t make sense. However, during a few years of the property where we maximize this property here, lo and behold, path of progress came down the road, right?

And so when you look at that, you said, “Whoa.” Well, our original capital structure was not outlined to do this to elite status, but it gave us a great opportunity to sell to the next person here or the next ownership group that wanted to come and capitalize on that new path of progress coming down the road here that wasn’t available at that time. And so when you look at that, opportunity can come up in a lot of ways. One, it can be just, of course, the path of progress for the market, it could be different changes in the landscape of just the many statuses or just other properties of how they’ve been renovated, you can bring them up to, right?

So, you can always bridge that gap to say, “What are the pieces that are missing? And how can we fill in that gap to meet the market, right?” And so if you can meet the market, then that’s a great opportunity for you to know you can succeed. Where you can get in trouble is that if you’re assuming that you’re going to be a magical owner and go in there and prove operations outstanding to what the market around subsides, right? So, if the market around you is at, you know, a vacancy rate of 15%, typically, you’re going to get brought down to that market and not be able to be this magical owner where all of a sudden you’re managing at a 97% occupancy, right?

So, you want to make sure that you’re tracking on the available properties that you have a proof case and that you can look at the proof case and say, “Okay. We know we can meet these tiers based on the expectations of what’s happening on other properties. And what we can do is offer a better service to help us stand out compared to those properties that we know as a safe drop and are risk allocation is limited because it’s already been proven on other properties that are surrounding comps.

Scott: Absolutely. Yeah. I mean, I think the importance of comps is just so critical. And I think I love how you kind of… You mentioned, like, magical. It’s not so simple as, yep, you’re going to go in and it’s all going to go the way you expect it to irrespective of the market around it, right?

Jason: Correct. Correct. Yeah. Many times you just have to be careful to look at it and make sure your comps are true comps, right, because you could be a good comp property, but you could also be a poor comp property. If you’re a 20-unit property and all your comps are 300-unit properties that are more convenient to have a big mini package with them, it’s not an apples for apples.

If you have… If you’re 2 bedrooms and the neighboring properties are 2 bedrooms, but yours are at 600 square feet and the neighboring properties are at 1200 square feet, well, it’s not apples to apples, right? And in reverse here the same holds true if you’re looking at a per square foot and your 2 bedrooms are 800 square foot, and then all the comps are 1300 square foot and you’re finding that that purpose you’re looking solely at the rent per square foot, well, then you’re missing the point of what can be the actual value because it’s not a comp for comp analysis.

Scott: Right. Right. Kind of taking a slight step back when we’re talking about just the general market. We’ve seen over the last 18 months, and really longer, cap rate compression across the multifamily world and across the real estate world no matter what sector you’re in. And I’m curious, you know, value-add, it’s really important to kind of be mindful of that and I’m curious how these cap rates have been impacting value-add properties that you’ve seen and maybe if that’s changed anything in terms of your strategy when you’re looking at assets and if that, you know, causes more challenge when you’re trying to build in that value.

Jason: So, we do want to look at our debt right and make sure that we’re understanding of our debt options. We don’t want to be into large renovation phase where everything is dependent on the sale, right? We typically want to find properties that are underperforming like we’ve said, but they’re still underlying cash flow, and then we can improve that cash flow. So, day one there is cash flow, it’s just not being maximized.

So, if we can parlay that over a 5-year hold, we get 45% or 50% from cash flow, the other 50% from sale, that’s a perfect partnership here. If it’s limited year where we’re getting 2% or 5% only across the entire whole period of cash flow and then everything is dependent on the sale, well, you’re putting so much at market risk based on timing and other avenues that are outside of our control.

So, we’d like to have that plug and play where we’re into markets that have cash flow and have appreciation. We want to have reserves going into this noting that there’s always uncertainties out there in the market. And we want to have debt that gives us multiple exit options where we’re not parlayed or forced into having to make a decision one, two, three years out where it’s forcing our hands that we have to do something whether it be exit or refinance, and are stuck with just the opportunity that the market serves us.

Scott: Right. So, then I guess my question is then, so when you’re looking at properties like this, do you find that you look at opportunities and maybe some right now you’re like, “You know what? That’s overvalued. That’s too expensive. That’s simply not worth it. The finances don’t work especially when we’re talking about debt and, you know, capex and what’s going to go into the reno,” or are you finding that still most often you’re seeing properties that even when we’re talking about compressed cap rates that they’re still that value that can be captured?

Jason: It’s going to depend on market. I don’t want to be in tertiary or secondary markets. I want to stay in, of course, MSAs that are primary run or top-tier secondary markets here where I know people are going to consistently come to. There’s going to be employment drivers, there’s going to be job opportunities. We have a lack of housing supply that hasn’t been met, right?

So, if I had a choice to be, you know, in, let’s say, Nashville, Tennessee or Dickson, Tennessee, well, I don’t want to be out in Dickson where the population is so limited here that my available people for this property are dependent, one, on very few employers, but, two, also just on the size of the town, right? So, I want to stay in markets that have that part.

When you look at cap rates, yes, it’s going to be subjective, but inflation will continue to bring up value, right? So, we’re seeing inflation continue to bring up the value of the property here. So, you do want to look at who is going to be your buyer pool to take you out. If I’m going to a property and severely paying above replacement cost, I mean, that’s going to put me in a place of risk. But if I’m finding properties here in an area where there’s not a ton of new supply coming on, we haven’t met the demand in a number of years in a desirable area like we said in Nashville or like Chicago or like, you know, other areas where we are in Atlanta, well, I would rather be there because the opportunity is going to have sustainability in these markets, it’s going to continue to grow, and that puts us in a place where we have multiple exit strategies, including holding the property because we believe in the area and the asset.

Scott: Right. So, you’re not against just holding on to a property if things are going well and there’s that growth baked in, right?

Jason: So, we do a portion of syndications. With syndications, there’s a built-in exit strategy. So, in those parts, there is going to be some exit strategy we typically hold between five and seven years, but we also do partnerships where that’s the attention, right, because as syndications are, they do have an exit cap on that part and you have to replace that at some point, right? And so timing is if you didn’t do a great property and you have to sell it, well, then you’re basically rolling maybe into a market here where it’s good for selling but bad for buying as we’ve seen for the last 18 months, right?

And so even on the point someone was asking, we have another property under contract to sell and it was saying, “Well, what’s the opportunity for 1031?” And it’s just saying, “Well, is there the right movement?” Right? You don’t want to always put yourself in a 1031 where you have to move into another area here where you’re potentially making a purchase or an allocation of a property because you have to, right, because that puts you into the part where potentially you’re not buying the right opportunity, you’re buying what’s needs to be done to fulfill the need of the 1031.

Scott: Right. Right. I want to talk a bit about just exits in general because you raised that great point about, you know, syndications, and especially when we’re talking value-add, often the exit is just a key part to that. So, what are maybe some of the keys or successful strategies you’ve seen, you’ve employed about really timing that exit and making sure that, you know, when you do exit it’s the right thing for your investors, it’s the best move at the time and going to capture the greatest return really?

Jason: So, if you are at or above business plan or in your whole, you have to look at where it puts you in terms of the sale. Right? And you want to look at just how many sales are happening, right? Where is the buyer pool? And does it feel like a seller or buyer market? Right? And we’ve been into a very big seller’s market.

So, we’ve exited on seven now. This will be the eighth prior to our anticipated hold time because the market is warranted, right? The one that we’re in a contract to sell in little over 3 weeks here, we are $150 to $175 above our year two rents and we’re at year one, right? And so we’re just way, way beyond our performance rents, which made sense at purchase, but we found very quickly into this that just the way the market was going that the acceleration of just the rent values there had gone up astronomically.

Right? And so we’re building this in here where we… And we’re fully occupied, which shows that we’re not having a lack of these available tenants that want to come in and rent at this rate. And it’s like that part we feel like we keep increasing rates and we keep being occupied, right? And so at a certain point where that’s a great property for someone else, right?

So, there’s a buyer pool, there’s a partnership that’s going to come in and hold that property for a number of years, but this puts us at a place where we say, “Okay. Let’s look at the market now. Let’s look at where interest rates are going. They’re going up, right? Let’s look at some of the unpredictability.” We see even some of the capital markets, right? There’s a lot of unpredictability out there. So, we feel more comfortable capitalizing on this now than testing our luck and saying, “Okay. Maybe let’s try it again or two or three years.”

And so saying that we can exit now, we feel comfortable and very good with that decision because it feels to be the best move for our investors and not risking the uncertainty that we might see ahead of us for the next, you know, two, three, four, or five years.

Scott: Right. And I think you make a great point too with, you know, seeing the rents increase so much. I’ve been citing the stat that I saw from NAR that was based in February. It was rents nationally have gone up by 11%. And there’s been a lot of discussion of, well, is that even sustainable? Is that kind of growth?

Is that the kind of thing that could even continue? And most people say no, there’s no way that could continue to increase that significantly. So, I guess what you’re saying is, do you guys… When you’re looking at a project and you see those rents going up, you start thinking maybe exit when you’re looking at the market itself rather than, “Hey, let’s just keep riding these rent increases and grow income.”

Jason: You have to look at a few sides, right? It’s like, it’s price inflation and wage inflation, right? So, we can increase the rent here, but the wage is… There’s a certain point where, like, if you’re consistently raising rent, $100, $100, $100, well, people’s income is not really matching that to increase, right? And so now we have that point here where there’s going to be a drop off or a breaking point where either, you know, that tenant base is not going to be afforded, plus we’re forgetting that they’re also paying a premium for gas now, a premium for food, a premium for everything else happening or dollars not going as far, right?

So, we’re having these parts where the option here is that, okay, it’s going to either break and you’re going to see that dip in occupancy or you’re going to have to change your tier of tenant base, right? And so, okay, does that mean that now we have to basically re-capitalize or change up the entire business structure here? So, you want to look at that and say, “Well, where are we in the business plan?” And right now being ahead of year two rents it’s pretty phenomenal to be there, but, you know, we’re at year one.

So, when you say that, well, okay, then we have to look at this opportunity. And again, like, the increase, right, across actually 11%. I heard 15% and this year will be 7% or 8%. Well, what’s funny there is if you look in markets like Arizona or Florida, it’s actually like 30%, 40%. And then you have like some other markets here where, you know, you have, like, I don’t know, maybe Dayton, Ohio, I don’t know, but let’s just say that, maybe that’s 2%.

Right? And so on the part where it’s not the same across, you’re going to see different pockets being affected differently based on how the market, how aggressive the market is, how many people want to live in that market, how many people are coming to that market. Right? And so that’s going to be the breaking point is that do people keep filling the supply of available renters that want to match because that’s going to be the opportunity for more jobs to come in, for more employees for that rent growth to still have runway compared to a town which doesn’t have that runway of, you know, 100 people, 200 people a day, and the employer subset is limited to these few companies here?

Right? So, you’re going to see that. And then another side from the company stage is that, yes, it’s a very aggressive area. You are going to have a more competitive rate to get people to come work for the company. However, if we’re looking at, of course, lending rates, well, now if it’s making it harder for these companies to borrow money to really to capitalize, to do their capital expense and other points, well, then they’re going to trend back at a certain point here from doing expansion because it’s just too costly.

Right? Their cost of capital is going to go up too much. You’re going to both sides of the puzzle here, but you’re going to see… I won’t say insulation. Well, I will say insulation. You’re going to be some form of insulation in desirable markets here. The Dallas’s, the Austin’s, you know, in its own frame parts of Chicago, your Nashville’s here, you know, your Miami’s, you know, your Jacksonville’s or Orlando’s, Tampa’s.

There’s going to be built-in insulation just for how desirable the market is that will limit it, it’s downside, right? But you will see some markets that have gone up astronomically. You just can’t… You can’t underwrite to that to assume that, “Oh, it was 10% last year, so then I’ll just do…then it must be 10% for the next couple of years, right?

You have to look at your risk analysis and say, “Okay. What’s my upside? What’s my downside risk? What’s my base case?” Right? And if you can stay performing at your downside risk, then that’s a good place to be.

Scott: Yeah, absolutely. And really, to kind of go back to your point when you were talking about the business plan and just really evaluating each asset as it stands and where it is in the business plan, and then knowing, you know, how it fits into your overall portfolio on what you guys are good at and what you do well. And is this, okay, right now is this asset in the position that it’s best for us or is it better for someone else to take it and run with it?

Right?

Jason: Correct. Correct. Because the market changes. And, I mean, you can look at where the market potentially go, but you don’t want to expect a path of progress is going to come your way, right? There’s plenty of properties, I’m sure, that, you know, people… I know people who have bought properties assuming the path of progress is going to come your way, and lo and behold, you know, Mother of path of progress just turned around and went the other way, right? And we’ve seen that in a lot of markets, right, where it’s right next to it, but it just hasn’t gotten to that new part.

It could be anything. It could be just the other side of the road is not the good school system. I mean, you could see a lot of things that could keep it from really catching up. And so just making sure that you’re looking at a path forward with a good building in a good place with sustainability with enough people, you know, a large serving MSA with a large number of employers that are not going to be one employer that’s going to sink the market.

That puts you in a good spot to feel good with your choice of an asset whether it be for 1 year or 10 years.

Scott: When we’re looking at just general trends in multifamily, are there any trends maybe that we’ve already touched on or maybe we haven’t that you’re seeing that make you either more bullish or more bearish on a value-add strategy going forward?

Jason: Just the lack of supply is still the point, right? And the lack… Again, it’s not nation… It’s nationwide, but it’s not like every market is the same. Not a lot of people are building out in, like, the woods somewhere. But there’s a lot of markets here where the expansion can’t keep up, right? And so you have to say, “Okay. These markets they’re not going to keep up. And even if they could, well, it costs too much now for them to do at a point here. So, we need more units, right? We need like 15-16 million units this decade.”

Right? We’re not going to meet that. We’ll probably get to 11 or 12.

Scott: Absolutely not. We are so under-built.

Jason: Yeah. And for once, I think it states that we’ll finally… It’s been 2007 the last time we’ve actually met the supply need, but that’s going to put us this year that in 2025 or 2026 we might actually still meet the supply need, but it doesn’t mean we’ve catch up for all the missing houses, right, just because you need it. So, if you say there’s, like, we need housing, right, we need it, but it’s very costly to build. And so from that, we’re just not going to keep that pace where we’re going to meet that.

So, there’s going to consistently be a way to find value-add to go out there and get opportunities to come in there and be competitive because of the lack of housing, but it is going to be…there’s going to be more desirable and less desirable markets to do this in.

Scott: Absolutely. Shifting gears, can you tell me a bit about your investors? Who are they and what really draws them to investing with you and your whole strategy?

Jason: Sure. So, we’re a family company. My wife and I started this company here. We want to work with people that we want to ask the question like, “So, what is it that’s important to you?” because you can find with investors it can be cash flow, it can be the force appreciation, it can be depreciation or tax benefits. So, we want to make sure that we can understand what’s going to be most beneficial to our investors.

That said, we want them to fully understand the process. We want them to take their time. And if this opportunity is right for them, fantastic. If they need more time, there’s no pressure from us. We try to have all of our conversations while ahead basically presenting an opportunity to investor so they can make clear decisions, ask their network or ask their trusted people whether it’s, you know, financial planners or their network or accountants to fully understand the process of investing in syndication and make sure it’s something that’s going to benefit them.

There’s lots of different ways here that syndications can be a win for an investor, but you do want to make sure that you’re in a place to be in a good investment place where you can go and invest money for these benefits and not strapped yourself and your available savings here. So, we’re looking for investors that are within… We have a big base. It can be anything from people that are doctors, lawyers to, you know, own other businesses. We have a lot of flippers who invest with us because, one, they can get predictable cash flow, but, two, they can get a lot of depreciation benefits too.

So, there’s a lot of opportunities out there for people that either have their own business or have a lot of income and they just don’t have the time allocation that we can offer this opportunity to invest into multifamily properties.

Scott: Right, right. And I’m sure you also, through the life of the investment, you communicate with your capital base, you tell them how the project is going, all of those good things? Yes?

Jason: Communication is most important, right? We really want to know where our money is. And we do not take it lightly that you’ve worked hard for your money and that you’ve now decided to invest it with us on our path forward with multifamily property. So, we communicate every month, get a monthly email right in the middle of the month here, basically, about the property, performance of the properties, what’s performing well, what needs to be pivoted or to have more attention to and how we are pivoting to meet the need of the new change with the property there.

It happens every month. And one of the best responses we got is that in the beginning, we weren’t getting any feedback back and I finally reached out saying maybe there’s something wrong with our email and one of our…

Scott: Yeah. Are you listening? Is this thing on?

Jason: Yeah, yeah. One of our investor friends said, “No. You covered it all on the email.” And that’s a good feeling here because we don’t get a lot of feedback. We welcome it. They can call, email, text anytime, you know, but in that front, we try to make the user experience easy, right? Go through our investor portal, all the documents are there. If you want to go find your K1 on a Sunday night at 11:00, you can find it there.

We want to make the experience easy for the investor, but also make them aware of what’s going on. I’ve invested in some of the larger platform syndication. It’s just to test the model and I find, you know, the communication is the piece where it’s not always the strong suit even for some of the top tier programs out there. And so to be more communicative with the investors noting that, you know, preservation of capital is our most important.

That’s been a powerful tool that we’ve continued to push for.

Scott: I couldn’t agree more. And the syndicators that I see that are doing it well and the sponsors that are doing well, they kind of lead with that communication because true, when we’re talking about, you know, multifamily projects, sometimes things happen, life happens, challenges arise, pivots have to happen, rather.

And being able to communicate that is key, right?

Jason: Absolutely. Right. You buy a property, it’s got 100, 200, 300 people living in it. You have the perfect plan and so they want out because you’re going to change, right? And that’s just like any business, right? But that’s why sustainability and having a long-term plan and having multiple exit options and all the other piece of the puzzle here to make sure that you can give the property the best attention it needs. That’s why multifamily assets are just top tier.

Scott: Have you acquired a value-add property before and you kind of thought you knew everything pretty much about the property, and then as you went in and started the renovation and started your improvements, there was just like a real big, “Oh, my gosh, wow, we didn’t expect this,” like a huge pivot?

Jason: The question is that, like, even when you are prepared, things happen that are just out of nowhere, right? We’ve been on a property before where the underground electrical lines had a surge and completely took down the power to a building. Luckily, we had the team in place that could go in there and get this fixed within 24 hours.

However, you know, that happened from something from the generator or the power complex of the network of the utility company, right? Completely unforeseen. Right? [inaudible] where we had a lift station and one property had just been replaced in the last 12 months prior to purchase, had an inspector going out there, and we actually had another electrical issue here that took down the entire pump and had to be replaced, right?

So, things like that you prepare. You do your best and things will still come up that will be unforeseen, right? But that’s where you just let your investors know, “Here’s the situation. Here’s what we’re doing. Here’s what we’re working on to get it fixed.” And that’s all you can ask. It’s be in front of them, get it fixed, and just move forward.

Scott: Absolutely. And then if you’ve done all the other things correctly and you’ve got that great value-add strategy, they’ll be happy in the end, right?

Jason: Correct. Right. It all comes together and, like, that’s just a part of life, right? Things are going to come up. Expect them, right? Preparing your best. But even if you prepare for everything, they’re still going to be everything plus one… then you take it as it comes.

Scott: Jason, thank you so much for joining me on the show today and really digging into value-add strategies. I think it’s so clear what a powerful strategy it is. And for passive investors looking for opportunities, I feel very strongly that value-add multifamily just has a lot to offer and especially when it’s with someone like yourself who has a lot of experience and clearly a forward-thinking mindset on it.

And if folks want to find out more, they want to connect with you, find out more about Yarusi Holdings, where can they do that? Where should they go?

Jason: Yeah, Scott. I appreciate you having me on the show. Thank you for the great questions. Great talk track. You can find me at yarusiholdings.com, yarusiholdings.com. You can find everything about us, our company, our offerings deals we’ve worked on in the past, find a link to our podcast, “Multifamily Live” podcast, talk a lot about multifamily as no surprise from the title there.

But yeah, yarusiholdings.com, you can find everything about us.

Scott: Fantastic. And we’ll, of course, have links to all of that in our show notes. Thanks again, Jason.

Jason: Thank you.