Updated: Sep 1, 2019
No one enjoys selling their real estate for less than what they paid for it. There are a plethora of factors of value that are not related to the state of market that you as the owner have influence over. Regardless if disposition is now or in 5 years, don't leave money on the table when you have a say in the process now.
In recent example, a client with a substantial portfolio here in Albuquerque began liquidating their assets. The reason for liquidation was due to a death of a partner and the partnership was not prepared for this. Two major factors detrimental to the liquidation of these assets were the structure of the leases and the accounting practices. Factors the partnership had direct control over but chose to take a more convenient option. The assets provided a cash-flow but the client is currently struggling to dispose of the property in a timely manner.
The exit strategy didn't exist. They even admitted to the lack of a plan. Can you sell your property today at the market value if you needed to?
Regardless of where you are at in the hold cycle of your investments, take actions to set yourself up for success and to receive full market price for your assets when the time comes.
Do the leases for your investment make your property marketable or do they detract from the value?
Can you at this moment download a management report that shows an up to date status of income and expenses?
There are plenty more questions to work through so let's get together and work through your portfolio.
Jake Ammon is a Vice President with Addison Commercial Real Estate in Jacksonville, FL. He specializes in commercial investment properties. Contact him at firstname.lastname@example.org or call Jake at 1-904-834-9809.