Improving Property Value

 As a real estate Syndicator and investor you ability to increase the value of the properties under your control will will be a fundamental part of your success. Income producing properties increase in value as the net income increases.

As a syndicator your profit comes from in increasing revenues and the increased value when the property is sold. Every aspect of the property has to be analyzed including the quality of management to increase net income and over all value.

Increasing value:

•  Make improvements.

• Increase rents

• Increase other revenue

• Refinance

• Reposition

• Reduce expenses

• Reduce taxes

  Make improvements:

When you buy a property there is almost always work that needs doing. The last owner delayed maintenance and a new set of eye balls see things the last owner no longer saw. A complete review of things needing repaired, touched up, and improved will make a good starting list. New paint and refreshed parking lot and landscaping adds value because it attracts tenets. Will the improvements result in increased rent rates. Can existing space be converted to a higher use that brings in more rent?

Is there room to add more additional space?

Increase Rents:

After the improvements are complete it is time to increase rents as soon as you can. You might be able to increase rents by adding serves that cost you less then the service you are providing cost, such as furniture, cleaning, security alarms, or Internet.

Increase other revenue:

Look for anything that will allow you to bring in extra revenue. Can part of the land be rented for a cell tower? Will the tenets pay for covered parking? Can Garages be added? What about serves that tenets will pay for, furniture rental, storage room or container rental, Internet, etc? Do you have a meeting room that could be rented out for events or meetings?

Refinance:

Can you refinance to take out cash and increase the return on the remaining equity? Can you get a lower interest rate?

Reposition:

Is the property a candidate for repositioning? From furnished to unfurnished or vise versa? Would making your apartments elder only make you more money? Can you remodel to high income rental? Should you convert to gated? Is the office building a candidate for conversion to a different type of renter or use?

Reduce Expenses:

Every expenses of operation and cost should be examined and reduced where ever possible. Each dollar saved is worth $10 in value. Management is a big expense and their performance has a direct bearing on property value, ineffective management should be replaced.

Reduce Taxes:

Taxes increases should be protested every year. Bad tenets cost money and should be replaced.

Other:

Other possibilities are rezoning to a higher use, subdivide, public improvements, better signage, changes in rental terms. Each type of property has specific improvements or changes that relate to that class of property. Familiarize yourself with what they are and consider them for your property.