Gareth Henry is a bigwig financial expert in the Alternative Assets Management sector. He graduated in 2001 at Heriot-Watt University where he obtained a degree in Actuarial Mathematics and Statistics.
He served as a Director of Strategic financial solutions at Schroders after which he joined the global alternative asset management company, Fortress Investment Group. Here, he served as the Head of Global Investor Relations.
In this piece, Gareth Henry provides investors with critical insights on how to maximize real-estate revenue using minor repositioning.
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Value Added Real Estate Investing
Years ago, industry jargon such as urban renewal was rampantly used to describe distressed downtown cities like Detroit and Cleveland where residents migrated to the suburbs for security reasons. However, according to Gareth Henry, things have changed, and thanks to the Internet of Things (IoT), the phrase is now termed as repositioning.
Repositioning is an emerging trend that enables investors to maximize their returns. Here are critical guidelines for repositioning.
Know Your Limits
Repositioning is all about making tweaks or modifications to change the character or purpose of a real estate. It may be repainting the walls of a room or a building. Also, it may be on a large scale, like the demolition of the Silverdome in Detroit, a property worth over $500, 000. Anyone has the financial power to apply a tinge of paint to a home, but bringing down a stadium; you must be an aristocrat to do that. Gareth Henry emphasizes the need to know your financial limits.
Select Your Target Consumers
There are several factors that influence repositioning. A major influencer is the scarcity of property in technologically-driven areas like San Francisco, New York, Seattle, and Silicon Valley. In such areas, a square foot of property costs $3000. That means every space must be properly utilized.
Additionally, technology has impacted the workforce. Currently, over 40% of Americans work remotely. That creates a positive disruption and opening opportunities for repositioning to thrive. Gareth Henry is also positive that the expanding e-commerce space will offer great prospects for repositioning as people continue to make real estate purchases online.