Everyone wants to get the most out of their money from simple investors to real estate moguls. Technology is having an impact on real estate investment, with repositioning being an important trend. Urban renewal was once a common term for depressed downtown areas while families and businesses fled the areas. Repositioning replaced this, and now it is welcoming to investors although there is no guarantee of success.
Strengths Should Be Appreciated
Gareth Henry points out the purpose, character or quality of the property is changed with repositioning, which can be done to almost all real estate types. It can be an additional coat of paint or something more to the property which can be a commercial location, multi-family residence or single family home. The limits you have in ability, time and budget should be appreciated. Learn more about Gareth Henry at angel.co
Pick A Target
Repositioning is a number of powerful forces converging instead of being a momentary event. Regions that have a lot of key technology such as New York and San Francisco have a lack of available property. The lack of spaces means that the entire area of the property has to be put to the best use.
Multifamily or Single Property Reposition
The project focus can be shifted to these properties where small changes can make a large difference.
The appearance can have a great impact on the way tenants feel arriving on the property and their willingness to pay to live there. Things like painting, resurfacing of the parking areas or sidewalks and updating the landscaping are little things that are required. The exterior or interior fixtures can be changed. These little things can make the property rent faster meaning an immediate payoff according to Gareth Henry.
Changes to the Structure
There are new amenities built or changes to the layout that will add additional revenue. Mechanical systems would need to be updated depending on how old the property is, according to Gareth Henry. While this is involved and expensive the property will be dramatically impacted.
Smooth Operation and Payoff
The way the property operates can be changed getting a new manager, evicting troublesome tenants and bringing in new tenants. Gareth Henry recommends realistic expectations and research be done in order to get repositioning that is profitable.