Commercial multifamily presents numerous Non-Rent opportunities for income that are available to increase the Net Operating Income from this popular investment property. The discovery of other income on a potential acquisition is up to you to determine from the existing property books and is a product of thorough due diligence. Ask the seller to provide you a list of other income, being clear that you are interested in ALL income streams besides rent.
For example, some sellers may "forget" certain income, Munstead Lavender that should be reported. Especially owners that are used to helping themselves to cash resources on the property. A good example of this is laundry machines. The owner may be used to helping themselves to this income and not reporting it as part of their receivables.
This is advantageous if you purchase the property because non reported income has no paper record. Once you take possession and report the income you have increased your bottom line.
Here are thirteen Other Income sources from a multi-family property available to increase return on investment:
Laundry or Laundry Contract
Cable Contract
Vending Machines or Vending Contracts
Fees for additional Parking or Storage
Forfeited Deposits
Bounced Check fees (NSF)
Late charges
Damage and Cleaning Charges
Application fees
Common Areas Maintenance (part of a triple net lease for a Retail or Office Building)
Pet Charges
Pay Phone income
Lease Termination charges
During the whole process of discovering Other Income sources, ask yourself where you could add additional income if you decide this acquisition will be part of your portfolio, make and maintain this as part of a Strategy List. When you discover hidden income as a result of your search ask the seller about these items during your renegotiation of the selling price.
Do you want to learn more? If so, I suggest you check out why Doctors Invest to increase ROI. You don't have to BE a doctor to invest like one.
Doctors Invest works with accredited investors and funds, to acquire and fund diversified portfolios of niche commercial real estate. We uphold accountability while yielding superior ROI. We Make High Yield, Short term investments OUR business so you can make Return on Investment YOUR business. Our results are your gain.
No comments:
Post a Comment