When It Comes to Real Estate, Think Like a Nun

When it comes to real estate, the three most important words are “location, location, location.” But when it comes to making an investment in real estate, the three most important words are “time, time, time.”

To understand how time and location go hand in hand in real estate, it is best to think like a nun and a priest.

The tried and true method to making money in real estate is to purchase a property in a great location, for a good price, and plan for the eventual growth and development of the area around your property. The key ingredient is to understand an area grows over a period of time, typically measured in years and decades and not weeks and months.

Nuns and priests have the fortunate ability to think in terms of not only years and decades, but centuries and millennia. Their focal points were set well in the past and their vision extends well into the future.

For example, the nuns of The Franciscan Sisters of Allegany started the St. Joseph’s hospital system in the Tampa Bay area in 1934. Today, the St. Joseph’s hospitals are part of a larger organization that stretches throughout the west coast of Florida.

One of the reasons St. Joseph’s hospital were so successful was because of the nuns’ vision of how the real estate market would look several years and decades into the future.

In 1984, St. Joseph’s purchased nearly 30 acres of land in southern Hillsborough county to build a state-of-the-art hospital. The only problem was that there were fewer than 5,000 people living in South County at the time. Today, the Apollo Beach-Ruskin-Gibsonton-Riverview-Sun City area is the fastest growing part of the county and has been for the last several years. The nuns’ foresight into future real estate use helped pave the way for the $225 million St. Joseph’s Hospital South.

Another example can be taken from the Jesuit order. From its inception in 1899 until the early 1950s, Jesuit High School was located in downtown Tampa. Then, in 1954, the campus moved to its current location along N. Himes Ave. At the time of the move, there were nothing but cow fields for as far as the eye could see.

Fortunately, the Jesuit priests had the foresight to understand that while there may have been very little around the campus at the time, the future potential of the real estate around the campus was tremendous.

Today, that area now houses the Tampa Bay Buccaneers practice facility and stadium, the New York Yankees spring training and minor league facility, a very large office park, medical facilities, and several other key developments in the West Tampa and Westshore neighborhoods.

To really make a meaningful return and improvement on your investment in real estate, make sure you use time to your advantage. While location is one of the most important qualities of real estate, your use of time is just as important. To really use time to your advantage, and to make the most out of your investment in real estate, think like a nun.

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Nico Hohman is a licensed real estate professional with a construction background in Tampa, Fla. Nico caters especially to first-time home buyers; home sellers; renters looking for a new apartment; and those looking to purchase and renovate a fixer-upper. Follow Nico on Twitter @TheNicoHohman, Like the Hohman Homes Facebook Page, share your favorite pins on the Hohman Homes Pinterest boards, and keep up with the latest from Hohman Homes at the LinkedIn Company Page.

A Real Estate Improvement Company

The real estate industry has many unique facets and players. But no matter what role you play or how what you do in the real estate market, there is one important goal that everyone should keep in mind.

When you consider real estate, you should consider it as an investment. And when you think of the criteria involved in making a good real estate investment, you must examine and analyze the utility and the value of such an investment.

Another way to look at utility is to look at usage. Is a particular property being used to its highest and best usage in accordance with all local laws and statues? In other words, can I put four different townhouses on this large residential lot on a busy street and receive more income in rent than I would be able to charge if I only had a single-family home on this property?

When we talk about value, we think of cost and we think of price. Can you sell a particular property for a price more than the purchase cost? If so, your property has positive value. If not, you property has decreased in value.

The goal of a real estate improvement company is to maximize both the utility and value of a property. We can do this through investing, managing, developing, and marketing a particular property.

To take our previously stated example of the townhouses, we will take a look at the utility and the value. With regards to utility, we have certainly increased - or improved - its utility. We now house four different families, versus just one previously. When looking at the value, we have increased the net operating income of a property thereby increase its value.

But just how much did we increase the utility and the value? This is where a real estate improvement company will come in hand to determine just how much utility and value this project provided versus other similar (or different) projects.

When looking at a piece of property, think about what the best usage of that property could be. Then, think about if that type of project is feasible on that property. If you have mastered those concepts and kept those goals, you have yourself a real estate improvement company.