October 2014

Found 81 blog entries for October 2014.

When an investment such as your multi-family property is offered to the market but doesn’t sell, it’s time to figure out what went wrong and change it. Because there are buyers looking for investments.

Usually, the reason falls into one or more of 4 categories: Price, presentation of the financial documents, marketing, and negotiations.

We’ve talked about all 4, but just to recap: 

The Price must be determined based on income potential versus expenses. The buyer isn’t going to live there, so extra amenities only count if they mean higher rents.

The presentation is all about presenting the financials, not about creating a desire to live in the property.

The marketing is different from single family home marketing. When we market multi-family

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People who don’t work in real estate are always amazed to learn that finding the buyer isn’t the biggest challenge in real estate. The biggest challenge is in getting the transaction from the offer stage all the way to closing.

This is true with single family homes, and true with multi-family and other commercial property.

Inspections can cause problems, as can appraisals. And with investment properties, the financial information can play a huge role in both issues. Unless your agent knows how to negotiate with buyers over those issues, your promising sale can wither and die.

Inspections: When the inspector finds a problem, you need to know first if it impacts the safety or longevity of the building. Then, because return on investment is the

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Since there are buyers looking for investment properties, there’s a reason why yours expired off the market unsold. It might have been because it wasn’t marketed properly, but it also might have been due to an incorrect price.

Determining the proper price for an investment property is a little different from determining the price for a single family residence. Instead of square footage, bedrooms and baths, property size, and amenities, the price has to be tied to income potential.

So unless your previous agent was experienced in figuring cap rates based on income, expenses, and vacancy rates, and unless he or she knew how to evaluate the competition, the price might have prevented serious investors from considering the property.

Without looking

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Do You Wonder Why Your Multi-family Property Didn’t Sell?

Are you wondering why your multi-family property expired off the market unsold? It might have been the price, but it might have been because it wasn’t properly presented to the investors who are seeking income properties.

The successful sale of any real estate depends on four things:

  • Price
  • Presentation
  • Marketing
  • Negotiation

But when dealing with income properties, the word “presentation” takes on a completely different meaning than when selling a single family home. And therein might lie the problem.

Presentation of a single family home involves clean-up, fix-up, de-cluttering and other activities that allow prospective buyers to see themselves living there.

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Agents who specialize in multifamily housing are required to know several things that residential agents don't need to know.

This specialized knowledge begins with pricing. Investors purchase multifamily housing to get a return on their investment. Thus, we have to know how to price a property to get the best return for the seller while showing the buyer that their investment will yield a return.

That means gathering the numbers, then calculating the income versus the expense, including debt service. Then, because potential investors are business people primarily interested in return on investment, we must present those numbers in the same manner that an accountant would present them. Unfortunately, many residential agents simply don't know how to

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Most of the people looking at single family homes are planning to live in those homes. But as you know, most of those who are searching for multi-family properties are not.

And that makes a big difference in how your property should be presented to the market.

Home buyers are looking at how they, their furniture, and perhaps a family will fit into both the home and the neighborhood. A large part of their buying decision is based on emotion and the “feel” of the home. Fresh paint and sparkling window panes can sway the decision.

Since you’re an investor, you know that investors are looking for something else.

Investors are interested in the return on their investment. Thus, the numbers are all-important. While they naturally want properties

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Are you considering the sale of your multifamily housing units? If so, now is the prime time.

Investors are seeing opportunity in today's market conditions, and they want to move quickly. Because they know interest rates could suddenly jump, they want to acquire more properties while they can still lock into low monthly payments.

On the other hand, investors with cash are eager to put it to work where it will earn more than they can get from a bank.

And - while they're willing to pay a premium for properties in prime condition, they aren't afraid to invest in distressed properties.

So whether your property is in top shape or in need of renovation, there is an investor who will be interested. In fact, right now I have a list of investors who

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The housing crisis has put thousands of former homeowners out of their homes and into the rental market – causing rents to rise. So you're probably collecting more from your multifamily property than you were just a few years ago.

If that's the case, why would you sell?

If you're in it for the long haul and intend to keep your rental properties for another ten or twenty years, then you probably don't want to sell.

But if you…

  • Are getting tired of dealing with tenants
  • Need to borrow money to invest in repairs
  • Have high payments because of an old loan with a high interest rate
  • Want to get out of the rental business and into retirement in just a couple of years

…then now is the prime time to sell.

Right now investors are

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Tenants can be hard on property, and time takes its toll. Repair costs can add up, and if you don't happen to have the cash to tend to small problems immediately, those problems can multiply.

If you've put off making repairs and are now facing the prospect of a large cash outlay, now might be a wise time to sell.

Because I'm a multifamily specialist, I have a list of investors who are ready, willing, and able to purchase your property and invest the money to make needed repairs or renovations.

So if you'd rather sell than invest more money, call me today.

I'll be glad to do an analysis and let you know what your property would bring in today's market. And of course, talking with me carries no obligation.

I look forward to meeting you.

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Chances are, the answer to that question is "no."

You see, multifamily properties are commercial. As such, they're marketed in an entirely different manner than are owner-occupied homes.

The buyers are looking for different information, and buying for completely different reasons. With multifamily properties, it's the return on monetary investment that counts, not the benefits of living in the home.

Successfully marketing a multifamily property requires additional financial skills that most residential agents don't have, beginning with knowing how to determine the correct price for income-producing properties.

Marketing multifamily properties also requires knowledge of where to find the buyers who are searching for such investments. As a

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