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- Video Series – Into To Hassle-Free Cashflow Investing Philosophy
- INTRO PART 1 – Intro To Hassle-Free Cashflow Investing
- INTRO PART 2 – Learning real estate investing vocabulary
- INTRO PART 3 – Get Higher Returns with Less Invested
- INTRO PART 4 – Getting From Where You Are To Where You Want to Be
- INTRO PART 5 – Taking The Hassle Out Of Your Real Estate Investing
- INTRO PART 6 – Formulas – Using Arbitrage To Increase ROI
- INTRO PART 7 – Understanding Leverage Ratio
- INTRO PART 8 – Calculating ROI Using Leverage Ratio And Arbitrage Spread
- INTRO PART 9 – Increasing Arbitrage Spread Magnifies ROI
- INTRO PART 10 – Property, Location, Team, Financing, and Expectations
- INTRO PART 11 – How To Make Money With Real Estate Investing
- INTRO Part 13 – Are Passive Investments in Real Estate Right for You?
- Video Series – Real Estate Math
- Lesson 1 – Calculating Return on Investment
- Lesson 2 – How and When to Use ROI (return on investment)
- Lesson 3: Calculating Gross Scheduled Income, Adjusted Gross Income, Net Operating Income
- Lesson 4: Calculating Operating Expenses
- Lesson 5: Calculating Capitalization Rate
- Lesson 6 – Calculating Interest Rate
- Video Series – Real Estate Investor Training Webinars
- Secrets of Self-Storage Investing
- Real Estate Collection Agency Secrets For Improving Your Real Estate Profits
- Chasing Infinite Returns with Real Estate Investor Financing
- How to Build Your FICO and Use It for Real Estate Profits
- Cash Management Strategies for Real Estate Investors
- Partnering for Profit
- Introduction to NNN Lease Commercial Real Estate Investing
- Cashflow Investing for Prosperity and Happiness
- Cashflow Investing Strategies for Recessionary and Inflationary Times
- Creating Your Life By Design
- Keys to Successful Property Management
- Tackling Success: From the NFL to Professional Investor With Professional Athlete Terrence Robinson
- Strategies for Protecting Your Income and Wealth from Rising Inflation
- Video Series – Tax / Accounting / Self-Directed IRA Investing
- A Real Estate Investor’s Comparison of IRA, ROTH IRA, and 401(k)
- Tax Planning Strategies For Cashflow Real Estate Investors
- Year End Tax Strategies for Business Owners and Real Estate Investors
- Using A Self-Directed IRA to Create Hassle-Free Cashflow
- The Ultimate Tax SmackDown Event: Solo(k) versus IRA
- Back to Basics Bookkeeping For Real Estate Investors and Business Owners
- Using A Self-Directed IRA When Your Income is High But Your Balance Is Low
- Taxmaggedon: tax strategies to Protect Yourself From Tomorrow’s Taxes!
- Creating Powerful Retirement Accounts for Business Owners & Real Estate Investors
- Falling in Love with Real Estate Bookkeeping
- Real Estate Investor Tax Deductions and Investing Strategies
- Why Do Hassle-Free Cashflow Investors Love Texas Real Estate
- Hassle-Free Cashflow Investing Secrets
- Hassle-Free Cashflow Lending Secrets
- How to Avoid UDFI Taxes When Investing in Real Estate with your IRA
- Eight Best Kept Secrets About Investing with your IRA
- A Guide to 1031 Exchanges
- Top 20 Things Every Business Owner Needs to Know
- Recordkeeping: Keep the Receipt or Lose the Deduction
- Managing Your Properties with QuickBooks
- Powerful Cash Management Strategies
- 17 Steps to a Successful Joint Venture
- Get a Fast Fifteen Points on Your Credit Report
- 12 Warning Signs You’re Headed For A Lawsuit With Your Partner
- choosing entity type
- 8 Steps to a Payment Agreement
- Negotiate Better Lender Terms
- Foreclosure Process
Filling vacant property in a timely manner is imperative to your success as a real estate investor.
The value of a commercial property is directly related to the value of the tenant leasing that property. Most common cashflow problems result when a property falls vacant and the manager / owner is ineffectual at filling the vacancy. Once you become skilled at filling vacant properties, you can direct that skill at filling other people’s vacant properties for profit. There are a lot of commercial property owners and prospective investors who would gladly give you a piece of their equity in exchange for filling vacant properties with highly qualified tenants.
Here is my personal checklist to filling vacant property for profit:
- Identify your prospective tenant profile.
- Make the property physically rent ready
- Choose a competitive rent and security deposit structure (sometimes a tenant will choose your property over your competition because your deposit is more within his reach.
- Create professional-looking marketing materials which feature ample photographs.
- Expose your marketing materials to the places prospective tenants are looking.
- Provide good customer service when prospective tenants call.
- Maintain a list of prospective tenant phone calls and call back prospects until they tell you they have leased another property.
- Implement reasonable selection criteria when tenants apply to rent.
- If prospective tenants are not calling you, go call them! Ask the neighbors for referrals. If filling a commercial property, flip through the phone book or local trade associations and cold call for tenants (or have your leasing broker do this).
- If your vacancy is in a commercial property, consider starting or purchasing a business to become your tenant. Often times purchasing a franchise and hiring a competent manager is cheaper than letting your commercial property sit vacant.
- If market rents have dropped below what is sustainable for your personal cashflow, invite your tenant to co-own the property with you in exchange for a premium rent structure; or take on an investment partner who supplements the negative cashflow in exchange for owning a piece of your equity.
If you are doing ALL of the above steps, your property should not stay vacant very long. The exception to this is if the marketplace does not have enough demand drivers to fill the vacancy. In that case, consider a change of use for the property.
Sometimes taking a property through a change of use is highly profitable; other times it is just a way to mitigate your loss on an investment burned by an unexpectedly changing local economy. If there is no demand for housing in your area, perhaps your vacant residential property is better suited as a daycare facility, dentist office, drug rehab center, assisted living, etc. If there is no demand for your vacant retail property, perhaps the property could be converted to vehicle storage, industrial distribution, refrigerated storage, data warehousing, or consider scraping the building and returning it to a previous agriculture use.
If your property is hopelessly vacant and there is no chance for profitable re-use, use this information to gain leverage with your lender. If they see the situation the same way as you do, you might be able to negotiate a lower payment or principal reduction on your loan balance.
To your success,
David Campbell – Founder of Hassle-free Cashflow Investing
Real Estate Investor / Developer / Author
Office: (866) 931-9149 Ext. 1