From the course: Real Estate Analysis Foundations

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Construction and rehab

Construction and rehab

- After you purchase the asset, this is the part where you go and execute on your construction or rehab plans. Now, the scope of what kind of work could be done would largely depend on the type of investment that you're making. It can range from little to nothing for fully leased, stabilized products. So if you're buying into a duplex or an apartment that is completely leased and is relatively new or recently renovated, there's really not much for you to do. This is a core type of investment. Or it can go the opposite, where you're building completely new from the ground up with full-on construction, and that would be a more opportunistic type of investment. And if you do something more in between, where there's some work, but not the full construction from the ground up, then you're looking at something kind of more value-added. So some of the key considerations to consider during this construction or rehab phase will be the type of rehab that you're doing, because that determines…

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