Читать книгу Commercial Real Estate Investing For Dummies - Peter Harris - Страница 95

Good deals are deals that make you money with less to no hassle, right? So, if you can find a property where the landlord hasn’t been paying attention to the market or just hasn’t bothered to raise the rent, you can get the property under contract, raise the rents, and reap the benefits.

These types of properties are known as lazy landlord properties. This is one big advantage of working the Branch One side of commercial properties. Once a property is listed with a broker, (we call these Branch Two properties) it’s likely the broker will let the owner know the rents are below market. Once this happens, you’ve lost most of your ability to base your purchase price on the (lower) current rental amounts. Every time we do a rent survey, I’m pleasantly surprised to find that there’s still owners out there who don’t bother to keep their rents up at market rates.

Some of them just don’t know they could be getting more. We’re sure some of them simply don’t care. It’s easier for them to keep the rents low so they don’t ever have to deal with any turnover. As we just mentioned, after a broker gets a listing, they will either encourage a lazy landlord to increase the rents, or they’ll price the property based on proforma rents. “Just raise the rents and this will be worth what we’re asking for it,” Is what we’ve heard hundreds of times.

The advantage of going direct to the owners and getting the property from them before a commercial broker enters the picture is huge. With the right lazy landlord property, you can get it under contract just below, or in some cases right at the actual value and come out okay. The reason is that if the rents are far enough below market, you can work the spread between the current actual value and the proforma value of the property.

Increasing the NOI (net operating income) causes the property value to go up by a large factor. Carve out a piece of this increase in value for yourself as your wholesaling fee, and you’re off to the races. Your buyers will love deals where they can get in and then raise the value of the property by increasing the rents.