Jul
2010
Botched or underperforming properties happen to be the properties with the most profit potential. Properties that are not used in their full potential have it in them to provide high investment returns, provided the changeover from their existing use to that which is most profitable is not too expensive. In order to distinguish whether or not a property falls in this category a few questions need to be asked and answered.
1) Is your location an asset?
2) Are Properties in this area being used to their full potential?
3) Given the market, (various groups of people) what kind of implementation would generate the highest income?
These three questions regarding the properties’ possibilities and future potential is the contributing factor distinguishing it as a Mismanaged Property which could be transformed to become very advantageous.
Investors must however keep in mind that not all properties or locations offer potential for large profits. Some properties remain unsuccessful due to the cost of improvement and development being too high. The location is poor and therefore the attraction to visit does not exist.
