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.