At Serure, the pre-contract of the market area of the asset is underwritten to determine the best and highest use, and efforts required, to increase income.  Once asset is under contract, our in house team performs specific due diligence to further determine the asset’s worthiness.

One of the most important concepts in real estate is the process of determining real estate investments higher and best use which defined is the best economic use of a property with respect to what is legally and physically possible at any given time.

Developed Property

Understanding that developed property can have more than one use can yield a hidden profit, and there are some situations that would warrant an investor to consider that the highest and best use with respect to a property might not be its current use.

1. A house or small units on a commercial or industrial lot
2. A house or small units on a large lot zoned for a larger multiple unit complex
3. A property where the parcel map shows the building sitting on two or more separate tax lots
4. A four-plex that actually consist of two duplexes on separate tax lots
5. An apartment with large enough unit’s to configure and add a second or third bedroom
6. A rental property where zoning permits additional extra units

The mathematics, of course, will vary greatly due to local restrictions, building setbacks, green belt requirements, parking codes and such, to the extent that each property has a different end result.

Nonetheless, real estate investors should always consider the highest and best use for a property and understand that its real value (and profitability) might lie just beneath the surface. If not immediately, perhaps in the nearby future.

The principals at Serure Real Estate are some of the most innovative real estate gurus in the business. I continue to be impressed at how they reconstruct properties and redesign its use in order to achieve the most value and highest return on my investment.” ~Ted Bronson, Bronson Investments, INC.