A value add property is one where the owner can increase the value through renovations, rebranding or improvement in management. Typically, by increasing the NET OPERATING INCOME, additional value has been created in addition to the previous value of the property.

WHY WOULD I SELL A VALUE ADD PROPERTY? If there is additional equity to be created why would I sell? Some owners don’t have the cash, the time, the expertise or the patience to take on such a project. A seller may own a rent controlled property with large one bedroom units and outdated kitchens and baths. There is money to be made, but how will they get units vacant? Who will do the work? How will they obtain financing? Maybe your multi unit building was great in the past, but now a triple net property, with no management requirements may be a better fit.

LIFE CHANGES  You may have decided to sell your building as-is. Perhaps you don’t have the time you once had to improve it. Your financial picture may have changed, as life goes on. You could be involved in a partnership dissolution, or you may have run across an opportunity that requires the cash you could get from the sale of your building.

There are as many reasons as there are owners, but whatever the reason, you have decided it is time to move on.

INVESTORS ARE LOOKING FOR OPPORTUNITIES With demand high and supply still low, for multi unit properties, now may be the time to explore your options. You should have an idea before you move ahead with the sale of your property as to how the sale is going to improve your situation. Even if you aren’t planning on making changes, knowing what it would take to achieve the potential upside on your property will make it easier to sell.

EXPERT ADVICE It is always a good thing to consult with your CPA and your real estate attorney before making a move, but doing nothing will not change your situation.

What we at PRS PROPERTIES CAN do for you is to recommend professionals we have worked with and we can talk to you about your particular situation. We can give you the names of contractors we have worked with who will give you a free estimate, if needed, to repair a damaged unit. We can recommend lenders who can help you regardless of credit, should you decide to do some repairs yourself . We can also look at your building for other changes that might allow you to get a higher value in order to create value without huge expenses for your building. We can help you to get the maximum value for your property, should you decide to sell, or the maximum return if you are planning to keep your building.

We have many investors who are looking for “as-is” properties and are willing to purchase with low rents, a moratorium or even with a problem tenant in place. We have put together numerous transactions over the years which involve properties that are not listed for sale. Many investors are in 1031 exchanges and need to identify a replacement property before their 45 day identification period runs out.

Should you decide to put your property on the market, we will put together an aggressive, targeted and professional campaign to get your property sold fast. We have been doing this for over 40 years, and we will use all the tools available to bring you the most dollars at closing. If you are thinking of selling or are just curious about the value of your property, don’t hesitate to give us a call.