FUNDAMENTALS
REPURPOSE
Reposition Properties to Maximize Profit
SEEING POTENTIAL AND TRANSFORMING SPACES FOR SOUND INVESTMENTS
by Lawrence (“Larry”) Taylor
ne of the most challenging parts of acquiring a new prop- erty is having the vision for what it could become. For example, when purchasing a single-family home, it’s easier to envision repairs to a bathroom or kitchen, but in more complex real estate transactions, such as the purchase of a multifam- O
ily property, these repairs can seem burdensome and costly. However, what many do not consider is how real estate repositioning—the strate- gic use of renovations and improve- ments—can enhance value and maximize profits. In basic terms, real estate repo- sitioning involves significant reno -
vations to create a new use for an existing building or site. Common examples of property reposition- ing include turning manufacturing space into offices or the transition of creative workspaces into loft apart- ments. The goal of repositioning is to derive more value from the property’s new use, either through higher rents
40 | think realty magazine :: august 2021
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