Shownotes
Landlords call it "value-add," and raising rent $100 to $200 a month after new cabinets and a dog park is the same move the industry has run for decades. Sam Froerer calls his own company "experience-add" instead, telling Jerremy Alexander Newsome and Dave Conley that renters need income at two-and-a-half times rent just to qualify. Insurance per unit in Florida and Texas tripled from $600 to $3,000 a year, reshaping where he invests. A fire that started on one resident's porch burned down twenty units in a single night. Sam also floats a REIT-style model where part of every rent payment buys residents fractional ownership of the building itself.
Timestamps:
- (00:20) "Value-add" defined – the term landlords use to justify hikes
- (02:20) "Experience-add," not "value-add" – why he renamed his own company
- (05:14) The income bar – exactly what you need to earn to qualify
- (10:46) Tax perks you don't get – the leverage investors have and you don't
- (15:17) Insurance tripled – how it reshaped where he chooses to invest
- (17:56) Twenty units, one night – the porch fire that could've ended everything
- (18:30) Rent that buys equity – the plan to make rent buy the building
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