In the world of real estate acquisitions when evaluating a property here’s something you might want to keep under your hat; that being what value can you add to the property? It may not be obvious. This is exactly what you’re looking for. There’s a real gold mine to be made in this business making it all worth your while!
Wikipedia: Takeover the acquisition of a merger. The strategy of buying and selling of various companies to quickly grow a company. Procurement the acquisition of goods and/or services at the best possible total cost of the process of acquiring products.
Of course get your inspection report back with a clean bill of health, this you expected. What’s the best use you can upgrade the property to? This is the golden nugget you’re looking for in this business. We’re talking about adding value here!
How about on top of the building is it clear enough to paint a big red circle to make a helicopter landing pad? If not how about in the field behind or to the side of the property? How about signage on the back wall of the building to allow advertising for a leasing situation so you can draw extra income on that?
How about the air space above the building? Are you near an airport with a several story building to permit the airspace above it for jet airlines to pass over? How about placing a tower on top of the building allowing a lease situation for cell phone communications?
Go down to the city planning office a see what’s in the plans for 5, 10 and 15 years out. Consider one mile, five mile and a ten mile radius from the commercial property you’re contemplating to buy?
OK in the final analysis do you want to make an offer or not on this property? It’s that simple. Make sure you off a low ball. Why? Because he’ll most likely refuse it. Why? It’s an offer that’s all. One of every ten offers you’ll most likely only get one buyer. Now you have a big question on you face?
This is how you make your profit on the front end, before you ever take ownership of the property. Out of the forty or so offers you make every month you’ll only get a couple takers. In this strategy by the end of the year you should wind up with about twelve to eighteen properties. If that many you also could only wind up with six! The bottom line is we’re looking at apartment building with forty units up.
So let’s count doors. Let’s say by the end of a year you could end up with as little as two-hundred and forty doors to as many as thirty-eight hundred doors! Quiet a difference. Now you can play with this formula as you wish! It’s you plan to make your profits on the front end. More about www.property.co
Gary says have a criteria sheet made-up on what to look for, on a hundred properties a month with his first line of questioning. Then he’ll get about ten of those properties to see if they pass his work-the-numbers sheet. From there, only one or two properties a month will pass for him to go have a look-see! At this point if the buildings pass will he finally makes an offer to buy. This process is called the 100/10/1 method.