Charles Callman

My specialties: Investors, North Portland Neighborhoods

How I help Investors: There are three broad categories of investment strategy that I advocate:

* bargain purchase
* increase value
* double-digit cap rate.

Bargain purchase is the purchase of real estate for at least 20% below current market value.

In the increase-value strategy, you buy a property for its current market value, but you select only properties with some unrealized potential. Then, immediately after purchase, you make whatever changes are necessary to increase the value of the property.

Double-digit cap rate means that you buy the building on terms that it has a capitalization rate of 10% or more. The capitalization rate is the net operating income (rent minus operating expenses but before debt service) divided by the purchase price. In other words, it is the cash-on-cash rate of return you would get if you owned the property free and clear.

CPA and Real Estate Sales and Developement for over 25 years