by Joanne Stevens, CCIM
The following are a list of five things that can improve cash flow and increase your property value.
VACANT PARK-OWNED HOMES - If you have homes in need of or in some stage of refurbishing, there may never be a better time to sell it “as-is”. Today, there is more demand for low cost housing.
The prospective pool of buyers for a home needing work is more desirable than in the past. You are likely to have several buyers with tools, fix-up experience and desire to buy such a home, fix it up and live in your community. The economy is helping to heat up the demand for the “sweat equity” homes.
RE-FINANCE YOUR PROPERTY - Currently commercial real estate loans are in demand by local banks. Even if you already have a low interest rate, you may be dollars ahead and build equity faster through quicker loan amortization by refinancing.
ELIMINATE RENT DISCOUNTS - The lease addresses when rent is due and what the late fees are. There is no need for a discount in order to get the idea across that you want all of the rent paid by the first of the month or whatever is currently being discounted. You have every right to be paid rent on time and in full, without a discount.
SELL OFF EXCESS GROUND - Unless you are a developer, that excess ground is not a plus. It is of no benefit to you and is costing you money for real estate taxes, mowing, insurance. If you sell your property, the new owner is not going to place any value on this extra ground. Call an engineer or licensed land surveyor and find out the cost for platting off the extra ground. They will also be able to tell you what is involved in getting the re-platting accomplished. Once you have the new site plan with the extra ground platted off, interview top commercial and land real estate brokers in your market. Ask these experts what they think the highest and best use is and what price is achievable for the ground.
WORK THE TAX ASSESSOR - You may never have a better chance to get your real estate tax assessment lowered. A lot of local tax assessors think that property values have dropped because of the recession. In doing your homework, you could find that there are inequities in how properties are assessed. Recently, one tax assessor lowered the assessment of a property by over 60% - and without a written tax appeal!
Look for more ideas in articles to come. ##