I would like to talk to you about a topic that is unique and exciting to real estate investing in your area. Once I purchase a property, I immediately put the property up for sale again. I then market its potential and future value. This method distinguishes my program from other real estate investment programs.
When I purchase a home on a property that has development potential, I list the property as a development in the works. I advertise the property for what it can be, not for what it is.
If I purchase an apartment complex that I want to convert to condominiums, I would list the property as condo-conversion for someone to finish. My price would reflect the value of the finished product. I would also offer handsome discounts for anyone who wanted to do the work.
For example, an associate of mine recently purchased a 4-plex for $400,000. We decided to begin a condo-conversion with the city. We hired an attorney to draft Covenants and Restrictions for the property and an engineer to draw a site plan for the new Homeowner’s Association plat. Our work cost us under $10,000. We put the property up for sale for $520,000 as a condo-conversion in progress and got three full-price offers the first weekend!
The key is realizing the potential that the property has and understanding how to make the changes to harness that potential. Most people are accustomed to seeing property for what it is – how it presently exists only. Seeing potential is tough, but not impossible to leam. Call me now and I will show you how to see potential in your investment deals.
Once the potential or “highest and best use” is uncovered, it can then be marketed for a profit. If it does not immediately sell, I begin the long-term goal to change the property to the “highest and best use.”
These two options can literally create a short-term profit or a long-term asset on every deal. The results are a steady flow of profits in the short term and an increasing net worth in the long-term.
Happy Investing,
Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate