5 CE Fix Fill It
The slide deck outlines the fifth step of a six‑step commercial real‑estate investment framework: “Fix & Fill It.” It presents a value‑add methodology that prioritizes fixing the building before fixing the tenant base, then systematically renovating exterior elements, amenities, vacant units, and hallways while managing deferred maintenance. The deck details specific renovation actions (roof, windows, landscaping, amenities such as laundry, storage, dog park, pool), energy‑efficient upgrades (low‑flow plumbing, LED lighting, efficient mechanicals), and a tenant‑screening protocol (income ≥ 3× rent, no evictions in five years, clean background, good credit). It also provides lease‑setting guidance (term length, auto‑renewal, rent increases, compliance) and renewal tactics tied to market‑rate rents and ROI on repairs. National vendors and contractors are listed for supply chain support. The overarching objectives are to maintain high occupancy with qualified tenants, keep ongoing expenses low, and achieve 100 % rent collections year‑round.
Topics
Fix & Fill It: Core Philosophy of Value‑Add Investing
Introduces the guiding principle “Fix the building first, fix the tenants second,” emphasizing stabilization of the investment through property improvements before tenant acquisition.
Exterior Renovations & Amenity Upgrades
Details exterior and common‑area upgrades—including roof, windows, landscaping, and amenities such as coin laundry, storage, parking, playgrounds, dog parks, pools, and clubhouses—to increase curb appeal and marketability.
Deferred Maintenance Management Strategy
Outlines how to prioritize safety‑critical maintenance items, assigning management (not the general contractor) to handle these requests during the renovation phase.
National Vendor & Contractor Recommendations
Provides a short list of national suppliers (United Building Supply, MFS Supply) and contractors (Tricor Contracting, US Best Repair Service, ZVN Properties) to streamline procurement and execution.
Vacant Unit Renovation & Energy‑Efficient Upgrades
Describes unit‑level improvements—hardwood floors, granite countertops, high‑end finishes—and energy‑saving measures such as low‑flow plumbing, dual‑flush toilets, LED lighting, and efficient mechanicals.
Tenant Screening Criteria for High‑Quality Occupancy
Specifies screening thresholds: take‑home income at least three times monthly rent, no evictions in the past five years, no violent criminal history, and clean credit with no current delinquencies.
Lease Structuring and Renewal Tactics
Covers lease term options, auto‑renewal vs. month‑to‑month, rent increase mechanisms, termination clauses, and compliance considerations, aiming for rapid achievement of full occupancy.
Hallway Improvement Sequencing
Advises completing hallway upgrades only after all unit renovations are finished to avoid contractor interference and rework.