I have been on vacation for about three weeks and absolutely loved it. But, I also get excited about getting back into things and looking at new apartment and commercial real estate opportunities. So, one of the first things I did when I returned from vacation was take some clients through a 72 unit apartment property that I recommended that they purchase. I told them it was a very good buy at the price and terms being offered.
There are 5 building at the 72 unit complex and after going through the first 4 or seeing 60 units, they were satisfied with what they saw. They were kind of convinced but they were having doubts that this was going to be as good of a deal as they (or I) thought. But, when it came to the last building (the ugliest and roughest looking building) their question to me was – “What are we going to see in the last building Darin, we can see why you saved this one for last” meaning – because it looks rough the inside is going to be verrrry interesting. Well it was.
When they looked at the last building, the remaining 12 units lets just say they went crazy. NOT because of how bad the property was but because of how HUGE and NICE the units were on the inside. To say they were shocked is an understatement. To say that they now knew that at $22,000 per unit this was a great deal, again an understatement. What did this come down to? Intangibles.
The numbers are the numbers on any kind of commercial investment property, however, it is this kind of intangible that makes you money. Always remember that. Money is made by looking under the surface. Always be looking under the surface. Looking at the intangibles to a property. Make this a habit and your commercial investment wealth will take off, I promise.