When you purchase an income producing property you buy the revenue stream or potential revenue stream. Usually the purpose is to increase it’s value by increasing its cash flow.
There are two ways to increase cash flow, increase revenue and decrease expenses. Corporate USA is an expert in reducing operating expenses to help increase cash flow.
Normally the largest line item for operating expenses are electrical utility and real estate tax. We have the expertise to drastically reduce these important expenses. We have saved our clients hundreds of thousands of dollars in reduced operating expenses.
On a capitalization rate of 10%, every dollar saved in operating expenses increases the value of the building ten dollars. That’s 10 to 1 ratio.