When used strategically, renovations can be a powerful option for increasing a property’s value, improving occupancy rates, and enabling you to charge higher rents.
But how do you make sure your renovations will result in a net gain? And how do you access the working capital you need to fund those renovations when your liquidity is tied up in your properties?
Keep reading to learn how you can approach renovations the right way, and use the value of your portfolio to help fund them.
Calculate Your Renovation ROI
How does your property compare to similar rentals in your area? Will renovations allow you to charge more in rent?
Take the time to research properties comparable to yours and properties with newer renovations or additional amenities. How much can you increase your rent if you complete those renovations?
Other factors to consider include:
- Current Occupancy Rates: Do you need to attract more renters, or are your units full?
- Exit Strategy: If you’re planning to sell in the future, will these renovations increase your returns?
- Renovation Costs: What updates or amenities will deliver the highest ROI?
Once you’ve determined which renovations will add the most value to your property, it’s time to adjust your capital stack to secure financing for your project.
Turn Your Monthly Cash Flow into Liquid Capital
Your multifamily portfolio is valuable, but that value is probably illiquid. And unfortunately, traditional financing sources have limited options for even the most experienced real estate owners and operators.
Nectar financing, on the other hand, allows you to unlock liquidity through an advance based on your entire portfolio’s cash flow.
With Nectar, you can access the funding you need in as little as 7 days, without giving up your upside or sacrificing equity in your business.
Nectar’s flexible solution is tailor-made for experienced real estate investors like you, and it’s designed to give you the working capital you need for renovations, debt refinancing, down payments, or a wide variety of other use cases.
Fund Your Multifamily Renovations with a Nectar Cash Advance
Because Nectar focuses primarily on cash flow potential, we’re able to provide funding to a wide range of multifamily owner-operators and investors who may not qualify for traditional funding opportunities.
We don’t prioritize credit history, collateral constraints, or debt-to-income ratio to nearly the same extent as banks or other lending institutions. And once you’ve paid us back, we go away completely, so you don’t have to dilute your ownership stake.
If you're ready to find out how a cash advance from Nectar can help you increase your property’s value and raise your rents, simply fill out our brief application and submit a 24-month, trailing P&L with debt service included. Let’s take your multifamily property to the next level, together!
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