Finding solid investment opportunities that offer a “silver lining” requires a disciplined business approach. For the novice investor or investment group it is easy to fall into the trap of trying to just make something happen. At Creative Choice Group we have found that several factors have enhanced our success – especially when looking for properties that offer long term value.
Don’t judge a book by its cover. First, just because a property is not new-construction or in mint condition does not make it a bad property investment. Cosmetic changes are easy fixes. A little paint, landscaping and TLC are often just what may be needed to take a property from really bad to really nice.
Do your homework. It is easy to get caught up in the moment or be influenced to make an uninformed decision. Real Estate can be a high pressure sale. Taking the time to do your homework to fully understand the capital and expense requirements to refurbish or enhance a targeted property is critical. Surrounding one’s self with strong partners and trusted financial advisors will lead to taking a calculated risk vs. a leap of faith.
Rome was not built in a day. Remember the old adage you get out what you put in. It takes time and commitment to transform a property in a challenging neighborhood. Creative Choice Group has shown commitment to go into these challenging neighborhoods to invest and develop certain lower income housing communities, near its headquarters in Palm Beach Gardens, Florida, which were underserved and run down when we bought them. Over the last 10 years, our property has gone through a significant transformation. Now managing at a high occupancy, the residents are proud to live there and take advantage of upgrades like high efficiency appliances, security monitoring, high speed Internet and even a new computer lab just for tenants.
Long term vs. short term. Often investors think the best answer is to get in and get out. But buying and selling properties can be more than a transaction. Creating residual income through rentals is a great opportunity to enhance cash flow over the long term. We realize for some, being a landlord conjures up images of roughing up the locals. Firms also fear the time required to property management will be more effort than it is worth. We have found that outsourcing to a reputable management company creates the perfect balance – i.e. avoid being involved in the daily operations of a property while creating an avenue to sustain long term value for a property.
Show me the money. Savvy investors are skilled at evaluating the current economic environment, assessing capital and infrastructure costs and most importantly, leveraging relationships with the community, regulators and government agencies to establish funding. Our experience at Creative Choice Group is that utilizing federal, state and city-wide program funds is a critical enabler to augment investment needs and to expedite enhancements.
Like any business decision, you have to decide if you are in this for the long haul. We have found tremendous value when we connect to the community. There is a great sense of pride as we develop homes for residents, create new jobs in the community and foster economic growth for the surrounding businesses. It is our belief that taking the time to make sweet lemonade out of what may be “sour lemons” provides a lucrative and rewarding approach to investing.