| Look Past the Bottom Line for a Property's | | | | improved property value. |
| Potential | | | | If your investment property venture is a |
| It's unfortunate that many real estate investors | | | | legitimate business, contact the local Chamber of |
| tend to look at the bottom line when deliberating | | | | Commerce and county government to see if |
| about a property, rather than the big picture. The | | | | there are special funds available for revitalization |
| real moneymakers in real estate investments are | | | | projects. Most Chamber of Commerces provide |
| the people with vision, who think creatively, and | | | | such programs as well as classes where investors |
| are willing to assume some level of risk. | | | | learn how to access these funds. |
| A client's initial line of questioning about an | | | | There are lots of great examples of properties |
| investment property goes something like this: | | | | with potential. I'd like to share some background |
| What has the property's revenue been for the | | | | about one of my own listings, a motel in |
| past three years? How much money will they | | | | Williamsburg that has not been open for three |
| make starting out? and, How much will they have | | | | years. The owners do not know when it was built |
| to invest in the property in the beginning? These | | | | - probably in the 50s or 60s. The motel sits on 2 |
| are all valid questions. After asking and answering | | | | 1/3 acres of land, which is all zoned commercially. |
| them, investors might try taking off the blinders | | | | The motel is situated right on a main thoroughfare |
| and thinking outside of the box. | | | | that was once called "The Golden Mile" of |
| Our population is growing, and land -- unlike cars, | | | | Williamsburg. It's geographic location is near York |
| furniture, or other structures -- cannot be | | | | County a phenomenal leader in economic |
| remade. | | | | development. York County is enticing businesses |
| Real estate investors might ask themselves these | | | | by zoning the northern section of town |
| simple questions: | | | | commercial and it will be the site of the new |
| 1. Is there growth in the area where the property | | | | hospital complex that is currently housed in |
| is located? Is there anywhere for the growth to | | | | Williamsburg. |
| go? If so, is it headed towards your property's | | | | Thinking Outside the Box |
| location? | | | | An important fact is not widely known about the |
| 2.Has the city or county zoned the are for | | | | motel's location, which is key to its investment |
| revitilization or economic development? If so, are | | | | potential. One mile from the motel property, |
| there any special funds or benefits available? | | | | across from the Williamsburg Pottery, a gated |
| 3.Is the property accessible to public | | | | senior community with full amenities (golf courses, |
| transportation? | | | | recreation center, pool) will break ground in April |
| 4.Are people beginning to look for homes in this | | | | 2004. The Fortune 500 Company behind the |
| area? If so, investors want to be looking far in | | | | building of this project is set to build 3,000 homes, |
| advance of others to secure the best property | | | | with an estimated completion date of 2006. |
| deals. | | | | Scanning the area, it is obvious there are no |
| 5.Is the property value in the neighborhood in a | | | | European Bakeries, international shops, or stores |
| slump or an upswing? Purchase during a slump for | | | | and eateries which deliver (drug stores, groceries, |
| maximum profits. | | | | take out, etc.). A strip mall with leasing options for |
| The truth is, an investor not make a profit from | | | | different businesses, or even an extended stay |
| the property for the first two years. Investment | | | | hotel could be built on this land, and run for a |
| property owners should be looking at the | | | | profit. Investors I have shown the property to |
| long-term, because they may make money over | | | | are wary of the $1,000,000 price tag on the |
| the next 15 years, while others are not. | | | | motel. In the coming years this price will seem like |
| Do your research, or hire a REALTOR who is | | | | a steal for commercial property in the area. |
| motivated to do it correctly. Speak to neighbors | | | | There are many other examples of properties |
| to understand the benefits of living there. Look at | | | | whose potential have not yet been discovered. |
| the neighborhood surrounding the area, and try to | | | | Remember, once you land that investment |
| determine if those homes have increased in value. | | | | property of your dreams, make sure you have a |
| For a solid indicator, consider county property tax | | | | marketing plan, which includes a decent web site, |
| figures. In some areas you will find a slight | | | | to launch your business. When speculating, trust |
| increase in the tax base of 1-3%. In other areas, | | | | your creativity and vision, and rely upon the |
| like Williamsburg, Virginia, taxes have increased | | | | expertise of a REALTOR who knows the area, |
| 15-13%. Tax base increases are linked to | | | | and shares your vision. |