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Disposition Prep |
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Individual investors sell their apartment property for many reasons, but more often than not, selling is not the result of a calculated plan to maximize the exit value. The most profitable dispositions should be coordinated with property financial trends, capital-improvement planning, economic conditions, and a program to establish the property’s full future income potential. NOI offers expert consulting to prepare properties for sale at maximum value.
Whatever the economic conditions, individual investors have direct control over specific, property-level actions to enhance exit value. These steps should begin about four months before planned sale, and are designed to demonstrate maximum value to a potential buyer.
The more obvious actions involve cosmetic and structural enhancement of the physical plant: common-area aesthetics; common amenities; unit aesthetics; unit amenities; security issues; deferred capital replacement; recurring maintenance issues. It’s common for individual investors to address at least some of these elements before attempting a sale.
Very few investors, whether institutional or individual, fully exploit their opportunity to show evidence of higher future rental revenue. No matter how efficiently a seller controls operating expenses at the site, buyers and their lenders tend to rely on industry norms to forecast future operating expenses and capital expenditures. But the seller can aggressively position the rent roll to increase the future revenue forecasted by buyers and lenders. That enhanced revenue projection translates into a higher expected NOI, a larger purchase loan, and a higher sales price.
NOI’s principals have extensive experience preparing large portfolios of apartment properties for sale at increased values. We thoroughly examine the client property’s revenue potential, and make specific, written recommendations to maximize it in the buyer’s eyes. Our report also includes comprehensive advice with regard to the asset’s general appearance, deferred capital items, and other value-sensitive factors. After the client has reviewed the report, we strongly encourage a web conference or in-person meeting for the client to raise questions, discuss implementation strategies, or challenge our findings.
Following our report to ownership, NOI offers ongoing consultation. We can help the client implement our revenue suggestions, and supervise capital improvements to the property.
NOI’s disposition prep services are unique in the apartment-property industry. We provide individual investors with a compelling cost-benefit yield to maximize profits from disposition. |
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| Case Studies |
| Disposition Prep |
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