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.