As my partners and I were touring an apartment building today I couldn’t help but notice how the seller was describing his property.
Backstory: This married couple has owned this apartment building in a great area of Louisville for about 60 years. They aren’t getting any younger and that was part of the reason why they contacted me. Visit www.IBuyUglyApartmentBuildings.com for more info.
The building has been a cashflowing asset to them for years, but is in need of significant repairs and updates. In their mind they see it as a creampuff and a piece of them, not unlike an arm or a leg.
They continually pointed out items that they thought were positive selling features, but in reality this building has a lot of drawbacks and a significant amount of work that needs to be done to it in order for it to reach it’s maximum value and potential.
What determines a person’s emotional attachment to a particular property? Family? Length of ownership? Sweat equity put in? Total dollar amount they have in it? Probably all of these things, but in reality none of these points are relevant to the actual market value of the property.
In terms of apartment buildings or rental units it’s factors like overall condition, repair or update costs, monthly rents, operating expenses, cap rate (annual net operating income divided by the purchase price or value), location and construction type that really define the property’s value.
Louisville Home Owners and Sellers take note: Your property’s value is based on the physical condition of your property and the current market conditions of your city. There’s no need to get emotional about or attached to your property. You can’t take it with you when you die, so enjoy the fruit it produces and enjoy your time while you’re here.
Make Today Amazing.
– Adam Walker
The King of The City
“If you want to be rich, start rich. What can you be grateful for today? Who can you be grateful for today? Can you even be grateful for some of the problems and the pain that you’ve been through in your life? What if you took on the new believe that everything in life happens for a reason and a purpose, and it serves you? What if you believed in your heart of hearts that life doesn’t happen to you, it happens FOR you. That every step along the way is helping strengthen you so that you can become more, enjoy more and give more. If you’ll start from that place money won’t be the source of your pleasure or your pain. Making money will just be a fun journey of mastery and wealth a great vehicle to acheive what matters most in life.”
– Tony Robbins
This 100 year old boiler may still work but it DEFINITELY needs to be replaced.