“The best investment on earth is earth.” Louis Glickman

Before you sell your multi unit building there are a few things you can do to make it a more profitable and easy experience for you.

MAKE SURE YOU KNOW THE NUMBERS. As a broker specializing in multi unit properties, I prepare an OFFERING MEMORANDUM which has the individual income and expenses, Cap Rate and Gross Rent Multiplier photos and additional information on the building and area, among other things. I look at the numbers with a seller to make sure everything looks right. The OM is important because this is the first and perhaps only time a potential buyer will look at your building. The next step would be for them to drive by the property. If the property and the numbers look good, a buyer will decide whether or not they care to make an offer subject to interior inspection and approval. You should make sure that you have presented your tenants with the latest allowable rent raise so that the income looks as good as possible.

MAKE IT ATTRACTIVE Walk around your building. Does it need trim paint? are there things around the property that should be removed? Is the grass green? Does the property look swept? If you don’t do this, you may miss something easily correctable and easy to fix before the pictures are taken. Make sure there are no people hanging around the property. Do what you can to put your property in its best light.

WHERE TO NOW? Once you sell, what is your next move? 1031 exchange? Delaware Statutory Trust? Delayed Sales Trust? UPREIT? Installment sale? This is something you should discuss with your CPA prior to the sale. Know about all your potential choices so that you can choose the one that works best for you and your family and your particular situation. Are you looking to increase or decrease your portfolio? Once you have answered those questions, you will have a much better idea how to proceed.

“Don’t sell your product. Solve their problem.” Mark Cuban

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 or you may want to move into a more passive real estate investment, such as a triple net or a DSL.. 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 45 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.