Five Steps to Successful Building Acquisitions

Chicago, IL, July 24, 2013 --(PR.com)-- Deciding where to invest money can be a difficult process for real estate investors, especially with the always changing housing market. For Pangea Properties, a private real estate investment trust (REIT) that focuses on providing quality and value at an affordable price point, taking the time to fully evaluate each aspect of a building is the key to successful acquisitions.

“Since our focus is in lower-middle income neighborhoods, our theory is to select each of our buildings with precise care,” says Pangea Properties CEO Al Goldstein. “We want to be as involved as possible in every aspect of the purchase. It helps us know the building from the inside out to make sure we have the most influence and control over the end product to benefit our residents and community members post acquisition and renovation.”

Below are five steps every acquisition team should complete before purchasing a building:

Research the location: Certain aspects of a building’s location can help draw new customers and retain old residents. For example, having schools in walking distance or easily accessible via public transportation is an important factor for families. In addition, neighborhoods with many board-ups can pose challenges or deter potential residents, while local commerce can help the building thrive.

Examine building type: Whether it’s a mixed-use, multi-family or a standard apartment building, each has its benefits and draws different renters. Consider the size of the building, unit count and types of units before purchasing a building. Having a combination of unit sizes can attract an array of customers, making the building an option for a single renter and families alike.

Consider the current condition: Before purchasing a building make sure to inspect the mechanicals. There’s always the possibility that the physical and structural condition is weak, which could present additional upfront expenses and make maintaining the building more difficult.

Evaluate expenses: Look into the current operating expenses for the building. Everything from water and sewage bills to landscaping costs and property taxes should be considered before purchasing. If the operating expenses are too high, the building may not be a strong investment.

Focus on finances: Assess the financeability of the asset before moving forward and test the value against the market. In addition, complete pro-forma models for building and evaluate the anticipated results of the projected cash flows, net revenues and value add opportunity.

About Pangea Properties:
Pangea Properties is a private real estate investment trust (REIT) targeting the distressed residential multi-family real estate market. Pangea was founded in 2008 by Al Goldstein and Steve Joung with one mission: to bring service, value and care to its residents. The entrepreneurs saw an opportunity in the Chicago market to create a real estate firm that serves as both the property owner and the building manager, utilizing a call center to support the high bar for service and scalability. Today, Pangea has over $250 million into 8,000+ apartment units throughout Chicago, Indianapolis and Baltimore, with the goal of continuing to expand within current markets as well as into new markets. Pangea has been highlighted by several media outlets including WGN TV, Chicago Magazine and the Baltimore Business Journal, among others. Pangea’s founder Al Goldstein has been named one of Crain’s 2013 40 under 40 and is a recipient of the Ernst & Young Midwest Entrepreneur of the Year. For more information, visit Pangea online at www.pangeare.com, www.Facebook.com/PangeaRE, www.linkedin.com/company/pangea-properties or on Twitter @PangeaRE.