Strategic Studies

about-doorStrat·e·gist
/ˈstratəjist/

Definition: One who is a specialist or expert in planning action to achieve desired goals through the most effective and efficient path under conditions of uncertainty.

Strategy is proactively shaping the future by closing the gap between the desired goal and available resources.

Marisue Mullins, Texas Real Estate Broker and Strategist, brings all of her acumen, experience and expertise to bear with her clients in achieving their real estate goals regardless of complexity. Whether the buyer is an investor looking to build their portfolio, a family looking to purchase their residence, a woman in transition from divorce or a senior move, an architecture buff looking for a historic home, a corporate executive looking for a downtown high-rise condo or a specialty investor looking for off-market opportunities, Marisue commits her resources, abilities and talents to creating a win-win scenario in alignment with stated goals.

Strategy, Creativity and Timing

As a result of a target market initiative, a potential seller requested pricing one of his rental assets. After performing an analysis on the asset, I met with him to discuss the valuation and his overall financial objectives. This meeting disclosed that his only motivation to sell his East Austin property was the current opportunity he had to purchase a below market 25-unit Multi-Family building in the area for $1.5M. Unfortunately, the sale of this one asset was not going to get anywhere near the cash he needed. He disclosed to me that he had many more rentals. Consequently, I suggested that I present him with an evaluation of all the single family rentals he owns in East Austin.

After this evaluation, we learned the price could be met but the timing to sell off each property individually was going to cause him to lose this opportunity. I suggested he allow me to package his properties together as a “bulk sale” and bring this package as an “East Austin Real Estate Portfolio” to my network of investors which included several Capital Fund Groups wanting a presence in Austin, Texas. I knew I had a large network of contacts looking for creative ways to get into Austin.

As a result of this strategic analysis and creative packaging, we successfully matched both of his objectives.

Forecasting To Ensure Excellent Returns

After working as a broker for 34 years and experiencing three unique market ‘crashes’, I have learned a lot about forward thinking and close observation for emerging markets. Four years ago, I met with key builders in Austin, Texas with some pretty aggressive ideas about land banking on the east side. The strategy was to purchase as much real estate as we could in a certain quadrant of the east side market close to the lake and downtown. The key was not so much land that was vacant but assets that offered an income stream while we let the market emerge into the boom that I felt certain was to come again (as it always does).

I proposed hedging future price increases with the land while the income stream would cover taxes, maintenance and continue to offer low income housing. A fair market price was suggested to offer the current homeowners; however, they did not need to move after the sale. They could have the cash out of their home and rent the property back at a low income rate. They would be given a 90-day notice before they had to move after one year of post-sale occupancy.

This is an ‘everyone wins’ scenario because a property that sold four years ago in this location averaged around $90,000. These lots, either vacant or as a tear down, now go for upwards of $400,000. This provided excellent exit margins for the builders and the beginning of some wonderful real estate movement coming out of the down market.