How can this be? Don't you know that your friendly, neighborhood Realtor is counting on your selling so that he can purchase his new BMW? You're a valuable economic resource. It's your patriotic duty! Sell, exchange, buy... spread those dollars around. Pay some loan points. Pay some title fees. Pay some taxes.

"Hey," you protest, "I'm doing OK. Most months my building makes money. My equity is growing. All I need is someone who can help me to attain my goals more quickly; help me to maximize my investment.

In fact, solving problems relating to real estate investments is what I have been trained for... both by experience (thirty years as a consultant, Realtor, investor, partnership manager, and owner) and by education (that's what being a CCIM and CPM is all about).

"What can I do to increase the value of my property?"
This is a great assignment and a never ending quest. Determining how to raise a property's market value calls upon all the creative juices and experience a consultant can muster. The trick to its success is simple ... increasing the Net Operating Income ... but not always obvious. An example:

I once had a client who wanted to purchase an aging retail strip center because it sat in a location which he believed would become very valuable in the future. The owner would sell it, but only at a price which was too high for the gross income the building produced. My responsibility was to determine if there was a way to increase the income enough to justify the asking price. I determined that the solution was to move some interior walls (removing hallways, closets, and storage areas) and in so doing convert non-income producing space to highly marketable square footage. A success? You bet. The rentable square footage was increased over 22%, transforming the property from a questionable purchase to a "real steal."

"How can I increase my Operating Income?"
The GSI (Gross Scheduled Income) is increased by other income (from items like laundry machines) and decreased by vacancy. When vacancies are out of control, a building can quickly turn from a source of income to a source of agony. Curing vacancy problems is often the result of years of non-attention to management.
An example:

A client purchased a 23 unit apartment building just prior - one day - to its foreclosure sale. The price per unit was so low that he knew he had a bargain. However, the gross income was so low that he understood why the prior owner had been unable to make his loan payments. The problem was clear, too many vacancies. Upon some investigation, the solution also became clear pretty quickly. There were too many Harleys ridden by guys with too many tattoos, who had too much cash and too few jobs, who were too belligerent, too crude, too disorderly, and too slovenly. The building had a reputation for being just what it was, a habitat for the habitual thug and thugess. The solution was easier to diagnose than to cure, only part of the solution was to remove the existing tenants. The harder task was to change the building's reputation. It took the execution of a creative and detailed plan which was strictly followed. Six months later, the landlord was the proud owner of a very profitable, low income apartment building where the new tenants had real jobs and were grateful for a clean, well lit, safe, professionally managed building where they could raise their families.

"How can I decrease my expenses?"
This is a question which is asked far too infrequently by too few owners. Unless constant attention is given to expenses, over time they simply get out of control. It just happens. A fresh look, a re-evaluation of each line item which results in decreased expenses also results in an increased Net Operating Income which translates into both increased cash flow and an increased value. Of course, cutting expenses is sensitive. For instance, trimming your maintenance and repairs without regard to long term effects can be a critical mistake. An example:

In the process of examining an Income and Expense Statement, I made some calls to

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