Rule 1 â€“ Focus on three â€œplaysâ€
- Occupancy Plays â€“ Properties with vacancy or upcoming lease expirations that can be purchased, leased and sold for a profit. Such opportunities may result from poor operators, from owners who lack capital or equity or from lenders who want foreclosed assets off their books.
- Transformation Plays â€“ Properties that can be converted physically in a way that increases value and generates a profit. These opportunities might range from unattractive properties that require a face-lift to functionally inadequate properties that can be redesigned to raw land sites or properties with excess land that can be developed.
- Basis Plays â€“ Properties available at prices that are a good value and offer cash flow and appreciation over time.