- West St. Fullerton
- We engaged a local owner who was very content with his current property. He had purchased the property three years earlier and in a very short time built a friendly relationship with his tenants. A retiree, he frequently spent entire days away from his wife fixing the many requests from his tenants. We approached them because we believed they could use irregularities in neighborhood valuations to increase cash flow and the quality of the property. They were highly skeptical that in such a short period of time they could relieve themselves of very needy tenants.
- We began by reviewing the in-place and potential cash flow. After completing the projections we conducted a detailed interview with the client to understand what was most important. We wanted to know why they liked the current asset, what they wished they could change about the property, asked them to paint the picture of what they wanted from real estate 10 yrs from now and asked if they disagreed about anything related to the property. The questions produced some interesting answers and the analysis of the numbers supported our theory that they could do better. We then put together a detailed road map on how we would accomplish their objectives while minimizing any risk by executing a simultaneous exchange.
- Now when our clients go visit the property they go much less frequently and they go together. During the analysis we learned our hands on-client wasn’t spending his time doing what he enjoyed and we were able to refer a well respected management company to handle the day to day so he can do more of the activities they planned on doing in retirement. When they do go “check on the property” now it always includes a dinner date, as there are numerous fine restaurants within walking distance of the property. In addition to a regular date night, our clients own a younger building, near the vibrant Bella Terra Community in Huntington Beach. They doubled their square footage and have seen rents increase by over $300/unit since they purchased the building.