There are different stages of our investment life. You may be looking to build your investments into a vehicle to fund your retirement. On the other end, you may have decided that it’s time to take life easier and free yourself from some responsibilities. Which end of the spectrum are you on?

AGGRESSIVE BUYER STAGE. When we buy our first building, especially if we are able to turn an under performing asset into a reliable and stable cash flow machine, there is motivation to do more. This may involve doing a 1031 exchange into a larger property or purchasing multiple buildings. It may involve refinancing and looking for another like the one we just completed. This may even introduce us into a new asset class such as going into a small strip center or a small office building. At this stage, we want to reap the benefits of our current investments and add on additional properties. We are probably looking for value add properties here, properties we can change physically, management-wise or both, in order to create additional value.

SLOWING DOWN After years of building a portfolio, it may be time to put on the brakes. Maybe move our investments into something requiring less day to day management, such as a triple net leased property, where the tenant takes full responsibility for taxes insurance and maintenance. Perhaps even a passive investment like a DELAWARE STATUTORY TRUST. (DST)  We still want to have income, legally avoid taxes and have something to pass on to heirs. It could even be a combination where we keep a building or two that don’t require much hands on activity, put some into triple net leased properties and some into a DST.

TALK TO THE PRO’S The first thing to do if you are thinking of portfolio building or winding down, is to speak to your real estate attorney and your CPA. Hopefully, you will have long term advisors who know your particular situation and can guide you through the transition. They know you, your finances and your goals and can help you make the right decision.

What we at PRS PROPERTIES CAN DO. We can recommend lenders who can help you regardless of credit, should you decide to do some repairs or updates yourself before you sell. We may know of some off- market properties that would fit your criteria if you are looking to add to your portfolio. We can also recommend qualified contractors who we have worked with, who can provide excellent building improvements for a fair price. 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 always 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.