“Practice makes comfort. Expand your experiences regularly so every stretch won’t feel like your first.” Gina Greenlee

With practice we can do something we have already done and maybe miss a few obstacles along the way. It can be a daunting task, purchasing a new building, but now may be the time to accelerate your assets and make an offer on another property.

HOW IS YOUR BUILDING GOING? If you are a person who has owned a property or properties for a while and your existing units are operating well, you could be ready for a new one. Have you completed the repairs you had originally planned on? Are your rents close to market? (at least most of them.) Do you have the time to take on a new project in addition to your others?

DO YOU HAVE THE CASH? Will you be refinancing an existing building, or maybe your home? Will you be using stocks or other investments? Have you considered purchasing with a partner? You may know others who have been impressed by your apartment properties and would like to learn while they earn. If you do decide to work with a partner, what type of partnership agreement will he be using-LLC? S corp, C Corp? What will be the duties of each partner? Would you rather have a limited partnership or a Tenant in common investment where the managing partner will be doing the day to day management? This type of investment could be good because it could be operating as the owner, but you wouldn’t have to come up with all the down payment. A partner could help with the financing as well. There are many ways to structure your new property. What is important is that everything is in writing and that your real estate attorney and your CPA are guiding you.

IS IT THE RIGHT TIME? There is no time like the present. If you can find a value-add property, you may be able to create some additional value by making large one bedroom units into two bedroom units by adding walls and adding additional income. You could even build an ADU (auxiliary dwelling unit) to create more income. Always make sure that your modifications are done with permits by a licensed contractor. A property with upside potential in a good location, could be the perfect addition. You may be perfectly happy with your units as they are, but if you have done well with your units and you enjoy the business, it may be something to consider.

“There are only two options regarding commitment. You’re either IN or you’re OUT. There is no such thing as life in-between.” Pat Riley

What we at PRS PROPERTIES CAN DO. We can supply you with rent and sale comparables in the area of your property, so that you know what the true value of your rental unit should be. We can look at potential purchases that you may be interested in.

If you should decide to sell your building, we can help you exchange into a larger or smaller properties. We can even help you move into something with less management responsibilities. We can also recommend experienced licensed contractors who can perform any repairs or installations you may need prior to selling. We can also look at your building for other easy and inexpensive changes that might allow you to get a higher value. 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, deferred maintenance 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 currently 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.