Apartment building sale preparation is a big process. It entails a lot, due to its sheer size. And, then there’s the paperwork. (No, not the sale contract but the documentation necessary to demonstrate it market value and revenue.) When you want to sell an apartment complex, you should already have a feasible exit strategy in-mind and ready-to-go. It’s a long process but with the right guidance from an experienced professional, you can sell your commercial property successfully.
Apartment Building Selling Overview
The first step is to identify when it’s the right time to sell. Of course, if the property is highly problematic and not profitable, that’s an unmistakable sign it’s time to move on and cut your loses. But, if the complex is a good investment, you might want to pull a quiet escape and reap the rewards. Of course, you can always go the 1031 exchange route, if you simply want to trade laterally from one property to another.
Today, the property specifications alone are not enough. You must give potential buyers high-quality photos, video, a 3D virtual tour, floor plans, drone aerial video and site plans. Buyers want to see it, not just read about it. Don’t make them work hard — that’s your job. Let them tour the property at their convenience from the comfort of their office. Give them the information and the media they want, instantly if possible. —Forbes.com
You’ll have to find qualified buyers, which you can do by working with a local real estate professional You can also tap into your own professional and person network to find an interested buyer. Or, you might consider approaching an established corporate entity which is known to deal in the world of multifamily real estate.
Apartment Building Sale Preparation Tips
Now, let’s take a brief look at the necessary apartment building sale preparation tips. (Keep in mind, this a broad overview. The details will differ according to the particulars of your own property and its situation.) Here are the basics of preparing for an apartment complex sale:
- Gather pertinent documentation. You’ll need P&L statements, tax documents, market appraisal, and like documents to present to potential buyers. Essentially, the documentation which clearly shows its past performance and current status.
- List any improvements made to the complex. You’ll also need to point out any past improvements you’ve made to make the property more functional, profitable, and attractive for tenant retention and future tenant interest.
- Disclose any known issues with the property. If there are any problems with the property, you must disclose any known issues to potential buyers. It’s just bad advice and practice to attempt to conceal any known problems.
- Suggest possible improvement for the future. Another selling point is future improvements. You probably have a wish list that you can share. This can serve as another marketing tool to interest buyers.
If you’d like to learn more about commercial real estate investment benefits and more about the selling process, please contact me.