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