Holding Strategies Conversions
Sometime a piece of real estate requires a change of use to achieve a
greater value. If you have a residential building that isn’t doing well and
the zoning permits the change to office use, check it out. If it’s costeffective
based on the cost of the conversion and the increased income
from office rents (which are often twice residential rents), you should
give it serious consideration. The reverse can also be true especially if
you’re converting to condominiums or co-opsThe sale of condo units
could bail you out of a poor investment. Sometimes, when circumstances
warrant it, municipalities grant incentives to induce owners to
convert their buildings to other uses. Finding out if there are any incentives
and their value could make a difference in your decision..
Once again I must use Leonard Kandell as a prime example of brilliant foresight and real estate savvy. Kandell owned land on Central Park South in New York City under a ground lease owned by the operator of a Ritz Carlton Hotel. It was a valuable piece of land in a very strategic spot with a majo...
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Partnerships or joint ventures are excellent vehicles for blending diverse
investing interests into a cohesive business entity. One partner
may put in nothing but money, another may put in both money and
expertise, a third may contribute land. The documentation binding
them together requires careful...
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John Maynard Keynes, arguably the greatest economist of the twentieth century, likened the position of short-term investors in a stock market to that of readers in a newspaper beauty contest (popular in his day). The ostensible task of the readers is to pick the fiv...
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There's something very reductive about the stock market. You can be right for the wrong reasons or wrong for the right reasons, but to the market you're just plain right or wrong. Compare this to the story of the teacher who asks if anyone in the class can name two pronou...
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Other situations, as well, require anticipating others' actions and adapting yours to theirs. Recall, for example, the television show on which contestants had to guess how their spouses would guess they would answer a particular question.There was also a show on wh...
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