BiggerPockets

It’s what you do with your money next that really counts.

Thursday, July 16

It’s what you do with your money next that really counts.

In a lot of cases today investors, property owners of any type of property, are faced with a sale price which is less than the purchase price for the property when they first acquired it.

Many of these owners really struggle with the concept that they are “losing money” if they sell at “that price”.

Consider this, it’s not how much you get that is most important, the most important thing is what you are going to do with it next.  As and investor, the name of the game is to increase the value of your port folio over time.

So, always do the math. As examples:  If your think you’re losing 25%, but you invest the proceeds on another property and get in at 50% of the value…you haven’t lost 25% at all…you’ve gained 25%.  OR…If you dispose of a property with decreasing cash flow, but can get into another property with an easily increased net operating income, then you will have increase net worth over time.

H. Scott Schultz

Email:  sschultz@eipinternational.com

Website:  eipinternational.com

“Bare Bones” Office Space

Tuesday, July 14

In today’s economic environment is there a market for “Bare Bones” office space? 

Many small new companies have only a single person or just a husband and wife running everything.  These entrepreneurs’ already depend on cell phones exclusively.  And why not?  With a good rate plan there is a definite cost advantage to not paying for a land line at all, neither at home or at the office.  Wireless companies even offer wireless cards for computers as a part of the same package deal.

Would new, start-up companies benefit from “Bare Bones”, class “C” office space?  Or would they just work from home until they could afford the class “A” executive office?

However, I do have a friend who has a small business.  Since he has a couple of part time assistants he can’t really work from home.

With stores like Wal-Mart and Mc Donald’s, pawn shops, flee markets and other bargain stores, doing better than ever because now, even the above average income family needs to cut costs, is the perceived need for high class, executive office space, with all the amenities, also in doubt?

I am working with one office building owner, and I think we are going to go with “Bare Bones” office space for now and see if we can get the building earning some income without the expense of a complete remodel.

H. Scott Schultz

sschultz@eipinternational.com

http://eipinternational.com