Rethinking Your Current Properties

I always encourage my clients to “never be sellers” but there are times when a property needs to be eliminated from a portfolio.

I recommend doing an annual assessment of the property, examining how it is performing, and deciding whether changes need to be made.

Some reasons for selling because of the PROPERTY

• Area becoming less desirable.
• Higher crime rate.
• Pending development that will lessen your value.
• Quality property management not available.
• Location is to far away for regular inspections.
• Too many vacancies in the area.

Some reasons for selling because of the OWNER

• Reducing number of properties into larger properties.
• Need to utilize profits for living expenses/travel.
• Tired of hassles…maybe a bad experience with a property?
• Financial position has changed:
  • If positive…you can afford more risk. E.g., commercial property?
  • If negative…you need to lessen exposure. E.g., single family home 1 year old.
• Change in tax law that effects your holdings.

The above are just examples – discuss with a professional your ideas as well as obtain suggestions. Your real estate should be providing all the benefits available to you.