How To Make More Money with My Real Estate Investments
Dr. Morgan has owned the 10 thousand square foot strip center at the corner of Cornell and Baseline in Portland for 20 years. His father helped him buy it and over the years deeded his interest to the good doctor. His kids are all grown and done with college. He sees himself working until he is 65. Now at 60 years of age the doctor needs to make a decision: to sell or not to sell?
His phone was ringing off the hook. Real Estate brokers were calling him every day quoting sales prices that were off the charts, close to $240 a foot or $2,400,000 dollars. He and his father had bought the property for $400,000, and he was struggling with his decision.
With only limited time to pay attention to his investment, he has relied on a competent property management company to help him manage the property. The property has a great cash flow. The tenants are all on absolute NNN leases. The mortgage is all paid off. Before income taxes, he’s taking home close to $12,000 a month, or $144,000 a year. With a 50 percent tax rate, he nets about $72,000 a year.