“There are 86,400 seconds in a day. It’s up to you what to do with them.” Jim Valvano

When I got into the rental business, it was much easier. Easier to buy, easy to rent units, evictions were easier. Even then, most people never owned any rental units. Today, it is more complicated, to be sure, but real estate still can be a great investment.

WHAT HAPPENED? A lot of new laws happened. Today you can no longer evict a tenant who is not paying, you need to hire an attorney. Insurance companies won’t routinely insure your well maintained building, many of the big companies have left California, not wanting the risks of fire and flood and legislation reducing their profits. You can’t even ask a prospective tenant if they have a pet. Tenants themselves have become, in many cases, more confrontational and litigious. Interest rates are high, although they have been much higher, making it more difficult to make a property “pencil out” with todays expenses. You may find yourself deciding it’s just not worth it anymore and selling your property.

CONSIDERATIONS. I see many investors moving their money to other investments. They may move their 1031 exchange into a Delaware Statutory Trust (DST), a group investment which keeps them in real estate , but involves professional management companies handling the day to day management of the property. Triple net leased investments offer reduced management because the lessee takes responsibility for the management and complete maintenance of the building. In cases like this, investors are willing to give up control of their property for a release of responsibility. If the DST goes under, they risk their total investment. If the triple net leased investment goes out of business, they may have a property, but most likely they will have to lease it at a lower cost to a less desirable tenant.

EVERYONE HAS TO LIVE SOMEWHERE. This is my feeling about all multi family properties. You don’t have to own a commercial building or run a business, but everyone needs a place to live. In any economy, regardless of what’s going on we all have to have a place to live. That is why I think, even with all the challenges, the multi family business is a requirement. Nobody wants to be homeless. We would all love to live in a beautiful place, but we have to live somewhere. For that reason, there will always be a need for landlords. What we do is necessary.

“I, not events, have the power to make me happy or unhappy today. i can choose which it shall be. Yesterday is dead, tomorrow hasn’t arrived yet. I have just one day, today, and I’m going to be happy in it.” Groucho Marx

What we at PRS PROPERTIES CAN DO. We can give you a good idea of the current value of your building. We can suggest changes you might want to make before sale to give you an idea what type of building you would be able to exchange into. You may decide to stay in the rental business. We are always available to chat. We can give you referrals for professionals, such as lenders, contractors, and engineers, so that you can decide who you feel best with. We can supply you with rent and sale comparable in the area of your properties, so that you know what rental values are in your area. It is important that you know the true value of your rental units, so that you can get them rented right away at market value, or at least as much as possible with rent control restrictions. We can look at potential purchases that you may be interested in to make the property more desirable, and maybe look at potential issues that an insurer might require you to repair.

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 help with getting the paperwork together for a refinance if that is your desire. 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 are currently looking for “as-is” properties and are willing to purchase with low rents, deferred maintenance or even with a problem tenant in place. We can offer a 7 day escrow and all cash at closing. Give us a call. We have also 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.