After analyzing why and what type of real estate you want to acquire for investment, the next step is to look for profit potential. "Buy sound, well-located property" is a time-tested technique for earning real estate profits. But I suggest changing that formula to "Buy sound, well-located property with profit potential." EXAMPLE: Recently, the large Park Lane apartment building on San Francisco's Nob Hill, across the street from the famous Fairmont Hotel, was purchased by 87-year-old longtime real estate investor Frank Lembi for a very high price, which makes no sense based on its low financial return from rents. Most of the apartments are rent-controlled at low rents. Although it is a beautiful "trophy building" constructed in 1927, that property only has two of the three key investment ...
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