So cal multifamily broker

Is Your Property—and Your Equity—Still Working as Hard as It Should?

If you’ve owned an apartment property for a number of years, there’s a good chance it has appreciated substantially and you’ve accumulated significant equity.

But knowing how much your property is worth is only part of the picture.

An equally important question is:

What return are you earning today on the equity you have tied up in the property?

A complimentary Multifamily Hold vs. Sell Analysis can help you evaluate whether continuing to own your property remains the best use of your equity—or whether it may be worth considering other options.

This Isn't an Analysis Designed to Tell You to Sell

In many cases, continuing to hold may be the best decision.

The purpose of the Hold vs. Sell Analysis is to give you a clearer financial picture of your property today and help you evaluate your options objectively.

Your analysis compares the potential financial results of continuing to hold your apartment property with the potential results of selling and repositioning your equity.

The goal is simple:

Better information before you make an important decision about your property.

What Your Hold vs. Sell Analysis Includes

Your Property's Current Financial Position

We'll look at the property's estimated current market value, existing debt, current equity, net operating income and estimated annual cash flow.

Is Your Equity Working for You?

Long-term ownership can create substantial wealth—but it can also result in a large amount of equity remaining tied up in a property.

Your analysis calculates the property's current cash return on equity, helping answer:

How much cash flow is my accumulated equity actually producing today?

The Hold Scenario

We'll project what continuing to own the property could potentially look like over time, including:

• Projected NOI and cash flow
• Potential future property value
• Mortgage principal reduction
• Future equity
• Anticipated capital expenditures
• Projected total wealth from continuing to hold

The Sell Scenario

We'll estimate what a sale could potentially produce after considering:

• Estimated market value
• Existing loan payoff
• Estimated selling costs
• Potential tax considerations
• Estimated net proceeds available for reinvestment

Potential Reinvestment Scenarios

The analysis can also illustrate how your estimated net sale proceeds might perform under several hypothetical reinvestment return assumptions.

This makes it easier to compare the potential opportunity cost of continuing to hold with the potential benefits of repositioning your equity.

More Than Just the Numbers

Financial return isn't the only consideration.

Your analysis also helps you think through questions involving future capital improvements, management responsibilities, liquidity, income needs, estate or succession planning, and whether the property still fits your long-term investment objectives.

Three Possible Outcomes

A Hold vs. Sell Analysis doesn't start with the assumption that you should sell.

It may indicate that one of three strategies deserves further consideration:

HOLD

Your property continues to provide an attractive return and remains well aligned with your objectives.

IMPROVE

Continuing to own the property makes sense, but opportunities may exist to improve rents, expenses, operations or the physical property.

SELL & REPOSITION

The property may have substantial accumulated equity producing a relatively low current return, making it worthwhile to explore other uses for that capital.

When Was the Last Time You Evaluated Your Property This Way?

You probably know approximately what your apartment building is worth.

But do you know:

Your current equity?

Your current cash return on that equity?

What your property could potentially be worth five or ten years from now?

What your equity might potentially produce if it were repositioned?

Those are different questions—and they can provide a very different perspective on an investment you've owned for many years.

Request Your Complimentary Hold vs. Sell Analysis

There is no obligation to sell your property and no requirement to list it for sale.

Why Work With Mike Lembeck?

Mike Lembeck of Citivest Realty Services specializes in Southern California multifamily investment properties and works with apartment owners to help them better understand their property's value, performance and available options.

The objective isn't simply to sell a property. It's to help an owner determine what makes the most sense to do with it.