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I would like to talk to you about a topic that is unique and exciting to real estate investing in your area. Once I purchase a property, I immediately put the property up for sale again. I then market its potential and future value. This method distinguishes my program from other real estate investment programs.

When I purchase a home on a property that has development potential, I list the property as a development in the works. I advertise the property for what it can be, not for what it is. Real Estate Investing

If I purchase an apartment complex that I want to convert to condominiums, I would list the property as condo-conversion for someone to finish. My price would reflect the value of the finished product. I would also offer handsome discounts for anyone who wanted to do the work.

For example, an associate of mine recently purchased a 4-plex for $400,000. We decided to begin a condo-conversion with the city. We hired an attorney to draft Covenants and Restrictions for the property and an engineer to draw a site plan for the new Homeowner's Association plat. Our work cost us under $10,000. We put the property up for sale for $520,000 as a condo-conversion in progress and got three full-price offers the first weekend!

The key is realizing the potential that the property has and understanding how to make the changes to harness that potential. Most people are accustomed to seeing property for what it is - how it presently exists only. Seeing potential is tough, but not impossible to leam. Call me now and I will show you how to see potential in your investment deals.

Once the potential or "highest and best use" is uncovered, it can then be marketed for a profit. If it does not immediately sell, I begin the long-term goal to change the property to the "highest and best use."

These two options can literally create a short-term profit or a long-term asset on every deal. The results are a steady flow of profits in the short term and an increasing net worth in the long-term.

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Happy Investing,

Kendall E. Matthews, CRMC
Phoenix, Arizona Investment Real Estate

P.s. Get my new e-book "101 Legit Tips To Boost Your Credit Score" Click Here to learn more.

P.s.s. Click here to receive my Free mini e-course for new and experience real estate investors. "7 Steps To Better Real Estate Investing."

 
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2 Comments on Why It Now Makes Sense To Look At Real Estate Potential Uses

Great post, interesting concept.  Seems like you are on the right track. 

03/04/2008 10:04 AM by Kim Kelley (Coldwell Banker Sky Ridge Realty)


  Actually worked with some investors that utilized this concept some years ago. The two things that held us back at the time, were changing the permit process in each city,to do what was envisioned,;and making sure I could match up the right property in the right area to maximize future profit. That was the key in the Seattle area to make "out of state" investors feel safe.  Good post.

03/04/2008 10:26 AM by Kim Harris-Broker/Owner/Sound Realty (Sound Realty)


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Real Estate Agent: Kendall E. Matthews (The Home Essential Group)
Kendall E. Matthews
Mesa, AZ
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The Home Essential Group

Office Phone: (888) 462-3771 Ext.: 343
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This blog is to hold me accountable in the never-ending search in finding ready, willing, and able people who want to sell or refinance.


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