Marketing Investment Properties

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Take my tips to successfuly marketing investment properties.

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Marketing Investment Properties

  1. 1. Review of Investment Properties By Mark Larson Presented to: Investment Professionals
  2. 2. <ul><li>Responsibilities </li></ul><ul><ul><li>Protect Owner’s Interest </li></ul></ul><ul><ul><li>Become Owner’s Real Estate Department </li></ul></ul><ul><ul><li>Become Owner’s Marketing Department </li></ul></ul><ul><ul><li>Be Owner’s Trusted Advisor </li></ul></ul><ul><ul><li>Make Life Easier For Owner </li></ul></ul>Owner Representation
  3. 3. Getting The Business <ul><li>RFP-Request For Proposal </li></ul><ul><ul><li>Lease Comps </li></ul></ul><ul><ul><li>Sale Comps </li></ul></ul><ul><ul><li>Market Data </li></ul></ul><ul><ul><ul><li>Vacancy </li></ul></ul></ul><ul><ul><ul><li>Absorption </li></ul></ul></ul><ul><ul><ul><li>Overall Market Conditions – Including Sub-market </li></ul></ul></ul><ul><ul><li>Cash Flow Analysis </li></ul></ul><ul><ul><ul><li>Most Important – 3rd Year Cash/Cash – 8% </li></ul></ul></ul>
  4. 4. Getting The Business <ul><li>PERCEPTION IS REALITY </li></ul><ul><ul><li>Be On Time – Period! </li></ul></ul><ul><ul><li>Dress The Part </li></ul></ul><ul><ul><li>Owner Presentation = Buyer Presentation </li></ul></ul><ul><ul><ul><li>Do Your Homework </li></ul></ul></ul><ul><ul><ul><li>Do Not Assume The Owner Knows Anything </li></ul></ul></ul><ul><ul><ul><li>No Detail Is Too Small </li></ul></ul></ul><ul><ul><li>If You Don’t Know The Answer, Don’t Guess </li></ul></ul><ul><ul><li>Be Confident </li></ul></ul>
  5. 5. Getting The Business <ul><li>Commissions </li></ul><ul><ul><li>Don’t Be Greedy, Be Fair </li></ul></ul><ul><ul><li>Don’t “Cave” </li></ul></ul><ul><ul><li>Be Prepared To Support The Percentage </li></ul></ul><ul><li>Listing Terms </li></ul><ul><ul><li>Be Flexible On Terms </li></ul></ul><ul><ul><li>Be Flexible On The Length Of The Listing </li></ul></ul><ul><ul><li>BRING An Executable Listing Agreement </li></ul></ul><ul><li>Get The Listing Executed! </li></ul>
  6. 6. The Flyer <ul><li>You Are Now On Automatic Pilot </li></ul><ul><ul><li>All Of This Information Was In RFP </li></ul></ul><ul><ul><ul><li>Price </li></ul></ul></ul><ul><ul><ul><li>Cap Rate </li></ul></ul></ul><ul><ul><ul><li>IRR </li></ul></ul></ul><ul><ul><ul><li>Summary Of Offering </li></ul></ul></ul><ul><ul><ul><li>Overview Of Market </li></ul></ul></ul><ul><ul><ul><li>Comps – Lease & Sale </li></ul></ul></ul><ul><ul><ul><li>Map, Aerial, Site Plan, etc. </li></ul></ul></ul><ul><ul><li>Enough Information To Peak Interest </li></ul></ul>
  7. 7. Offering Memorandum <ul><li>Enough Information To Make A Decision </li></ul><ul><li>More Detailed Information </li></ul><ul><ul><li>Financial – Argus Run </li></ul></ul><ul><ul><li>Comps – 5+ Lease and Sale Comps </li></ul></ul><ul><ul><li>Market Overview – Vacancy, Absorption </li></ul></ul><ul><ul><ul><li>General Market & Sub Market </li></ul></ul></ul><ul><ul><ul><ul><li>Competitive Buildings </li></ul></ul></ul></ul><ul><ul><li>Building Information – Physical Description </li></ul></ul><ul><ul><ul><li>Structure, TIs, HVAC, etc. </li></ul></ul></ul>
  8. 8. Offering Memorandum <ul><li>Area Information </li></ul><ul><ul><li>Map, Aerial, Site Plan, Parcel Map </li></ul></ul><ul><li>Most Important Aspect – The Story </li></ul><ul><ul><li>Why Should I Buy It? </li></ul></ul><ul><ul><ul><li>Upside Potential </li></ul></ul></ul><ul><ul><ul><ul><li>Below Market Rents </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Reposition – Office To Medical / Rehab </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Below Replacement Cost </li></ul></ul></ul></ul><ul><ul><ul><li>Long Term Financial Stability </li></ul></ul></ul><ul><ul><ul><li>Avoid Paying Capital Gains </li></ul></ul></ul>
  9. 9. Bid Date For Offers <ul><li>Pros </li></ul><ul><ul><li>Makes Buyers Focus </li></ul></ul><ul><ul><li>Ideal For Larger Assets </li></ul></ul><ul><ul><li>Quantify Timeline </li></ul></ul><ul><ul><li>More Professional </li></ul></ul><ul><li>Cons </li></ul><ul><ul><li>1031 Buyers Don’t Like It </li></ul></ul><ul><ul><li>Can Make Process Shorter, Also Longer </li></ul></ul><ul><ul><li>Have To Disclose Current Offer Activity </li></ul></ul>
  10. 10. Buyers <ul><li>Where Do They Come From? </li></ul><ul><ul><li>Neighbor </li></ul></ul><ul><ul><li>Local Area </li></ul></ul><ul><ul><li>Your Database </li></ul></ul><ul><ul><li>Other Brokers </li></ul></ul><ul><ul><ul><li>Lee & Associates </li></ul></ul></ul><ul><ul><ul><li>Other Outside Brokers </li></ul></ul></ul>
  11. 11. Offers <ul><li>Field Offers </li></ul><ul><li>Prepare Matrix </li></ul><ul><ul><li>Price, Terms, Broker, Deposit, Comments </li></ul></ul><ul><li>Pre Qualify </li></ul><ul><ul><li>1031 Exchange Buyer? </li></ul></ul><ul><ul><li>Known Relationship – Buyer or Broker? </li></ul></ul><ul><ul><li>Active In Market </li></ul></ul><ul><ul><li>Motivation </li></ul></ul>
  12. 12. Quality Buyer <ul><li>1031 Exchange Buyer? </li></ul><ul><ul><li>Has Up-leg Closed? </li></ul></ul><ul><ul><li>If So, When? </li></ul></ul><ul><ul><ul><li>Must Identify Within 45 Days </li></ul></ul></ul><ul><ul><ul><li>Must Close Within 6 Months </li></ul></ul></ul><ul><ul><ul><li>Can Only Identify 3 Properties </li></ul></ul></ul><ul><ul><li>Where Are Funds </li></ul></ul><ul><ul><li>Is Our Property #1? </li></ul></ul><ul><ul><li>Any Problem With Equity/Debt? </li></ul></ul>
  13. 13. Qualify Buyer <ul><li>What Is The Buyer’s Track Record? </li></ul><ul><ul><li>Number Of Properties Owned </li></ul></ul><ul><ul><li>Number Of Properties In Area </li></ul></ul><ul><ul><li>Contact Last Three Sellers </li></ul></ul><ul><ul><ul><li>Does What Is Agreed To? </li></ul></ul></ul><ul><ul><ul><li>Does Buyer Re-trade? </li></ul></ul></ul><ul><ul><ul><li>Does Buyer Close? </li></ul></ul></ul><ul><ul><ul><li>What Is Buyer’s Reputation? </li></ul></ul></ul>
  14. 14. Escrow Responsibility <ul><li>Obtain Due Diligence Materials Up Front </li></ul><ul><ul><li>You Will Need For Marketing Materials </li></ul></ul><ul><ul><li>You May Discover A Problem </li></ul></ul><ul><ul><li>Be Prepared To Deliver “Box” To Buyer </li></ul></ul><ul><li>Order Title Report </li></ul><ul><li>Order Survey </li></ul><ul><li>Check On Potential Financing Up Front </li></ul><ul><ul><li>Can Be A Major Problem </li></ul></ul>
  15. 15. Closing <ul><li>Party Time </li></ul><ul><ul><li>Lunch </li></ul></ul><ul><ul><li>Dinner </li></ul></ul><ul><ul><li>Event </li></ul></ul><ul><ul><ul><li>Baseball, Football, Basketball, etc. </li></ul></ul></ul><ul><li>Gift </li></ul><ul><ul><li>Very Important – You Will Be Remembered </li></ul></ul><ul><ul><ul><li>Hockey Story </li></ul></ul></ul><ul><ul><ul><li>Weekend Get Away </li></ul></ul></ul><ul><ul><ul><li>Back Country Skiing </li></ul></ul></ul>

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