Avoiding Common Pitfalls in Real Estate Sales: Fees, Taxes, and Profit Calculations

June 1, 2024

Selling property isn’t just a transaction; it’s a pivotal decision that requires careful consideration and strategic timing, especially when you’re managing a sizable real estate portfolio like mine. Over the years, as I built and managed a $5 million real estate portfolio in Washington, DC, I’ve learned that understanding the market, the costs involved, and the potential net profits are crucial before deciding to sell.


Firstly, timing is everything in real estate. It’s essential to analyze market conditions to determine if the market is in your favor. Is it a seller’s market with high demand and low supply? Or is it a buyer’s market, where properties linger on the market? Understanding this will help you gauge whether you might get top dollar for your properties or if you should wait it out.


Before listing any property, getting accurate and recent comparable sales, or “comps,” is vital. These comps help estimate the potential selling price by comparing your property to similar ones recently sold in the area. This step ensures you set a competitive and realistic price, reflecting the current market conditions.


Consider the fees and taxes associated with selling. These can eat into your profits significantly and include agent commissions, closing costs, and capital gains tax, if applicable. Each of these needs to be factored into your calculations to understand the true net profit from a sale.


Calculating the net profit is straightforward but requires attention to detail. Subtract all the selling expenses, including any outstanding mortgage balances, from the selling price. This calculation will give you a clear picture of the cash you’ll walk away with, helping you decide whether selling meets your financial needs.


For me, upon reflection, I realized that the immediate cash I’d gain from selling didn’t justify losing the long-term value these assets are likely to accrue. Plus, my properties were “cash flowing,” which means they were generating a steady, positive cash flow after accounting for all expenses, including mortgage payments and maintenance. This income contributes to my financial security and growth.


Real estate investment is typically a long game. It’s not the type of asset you can liquidate quickly without potentially sacrificing value. The investment is often “trapped” for years to decades, gradually appreciating and building substantial wealth.


Before you consider selling, especially if motivated by immediate cash needs, thoroughly evaluate the financial implications. Sometimes, other strategies such as refinancing might meet your cash flow needs without requiring you to sell your valuable assets.


Remember, every property in your portfolio should work for you—contributing to your financial goals and stability. If selling doesn’t align with your long-term strategy, holding might be the best decision, as it was for me. Make sure to do the math, consider your financial goals, and consult with professionals to make the most informed decision. This approach not only secures your investment but also ensures that you continue to build and leverage your portfolio to its maximum potential.

How to Build Trust and Community Support for Your Next Project

November 24, 2025
In Washington, D.C., neighbors hold veto power more than most developers realize. A hostile neighbor can halt your project, delay permits, rally opposition, or turn a simple renovation into a public battle. I've lived it: stop-work orders, ANC hearings packed with angry residents, months of delays. All because I showed up with blueprints before I showed up as a person. The truth? Most development opposition isn't about your project. It's about fear of the unknown and feeling unheard. The best developers I know don't just build buildings. They build relationships first. They understand that winning over a neighborhood isn't manipulation; it's showing respect, sharing your vision, and proving you're invested in the community's future, not just your profit margin. Here's how to become the developer your neighborhood actually wants to work with: 1. Introduce Yourself Before You Need Something Don't wait until you need a zoning variance to knock on doors. Show up early — before plans are finalized, before the bulldozers arrive, before anyone has a reason to worry.  How to do it right: Go door-to-door within a block. Introduce yourself by name, not by company Keep it casual: "Hi, I'm Sarah. I just purchased the property at 123 Main Street and wanted to introduce myself before we get started." Ask about them: How long have they lived here? What do they love about the neighborhood? Leave your card and say, "I'd love to grab coffee and hear your thoughts sometime." Why it works: People are far more receptive when you approach them as a neighbor, not a developer with an agenda. 2. Show Up With Food (Seriously) Breaking bread together is one of humanity's oldest trust-building rituals. Use it. Ideas: Bring donuts or bagels when you introduce yourself Host a casual "meet the project" coffee hour on a Saturday morning Drop off cookies during the holidays with a handwritten note Invite immediate neighbors to a casual dinner at a local restaurant (your treat) Why it works: Food disarms people. It signals generosity, not greed. It transforms you from "that developer" into "that nice guy who brought us pastries." 3. Have Short, Recurring Conversations Don't info-dump your entire vision in one 45-minute monologue. Build the relationship through frequent, brief check-ins. The rhythm: Week 1: Quick introduction (5 minutes) Week 2-3: Follow-up about their concerns or interests (10 minutes) Month 1: Share preliminary concepts, ask for input (15 minutes) Ongoing: Regular updates as the project progresses What to talk about: Their history in the neighborhood What they hope doesn't change What improvements they'd love to see How construction might impact their daily life (and how you'll mitigate it) Why it works: Frequent, low-pressure touchpoints keep you top-of-mind and demonstrate ongoing commitment. People feel heard, not steamrolled. 4. Share Your Vision — Show Them What Excites You People resist what they don't understand. Bring them into your vision before it's set in stone. How to share effectively: Use visuals: sketches, renderings, mood boards — not just technical drawings Talk about the why: "I fell in love with this block because of the oak trees and the corner store. I want to honor that." Be specific about community benefits: "We're adding 4 affordable units," "The ground floor will be a café for neighbors," "We're preserving the historic facade." Show, don't tell: Walk them through similar projects you've done. Introduce them to happy neighbors from past developments. The magic question: "If you were designing this, what would matter most to you?" Why it works: When people feel like collaborators instead of victims, they become champions. Their fingerprints on your project = their investment in its success. 5. Be Radically Transparent About Disruption Construction sucks. Don't sugarcoat it. But do take responsibility for making it suck less. Proactive communication: "We'll be doing demolition July 10-15. It'll be loud from 8am-4pm. Here's my cell if it's unbearable." "We're blocking the alley next Tuesday for a delivery. I'll leave notices and make sure trash pickup isn't affected." "Our crew will park on the next block to avoid taking your spots." Follow through: Actually answer your phone Deliver on promises (early work hours, clean job sites, etc.) Send weekly text updates to immediate neighbors Why it works: Predictability reduces anxiety. When people know what to expect and see you managing impacts, they give you grace. 6. Celebrate Shared Progress Don't disappear after breaking ground. Bring neighbors along for the journey. Ways to celebrate: Host a "topping out" party when framing is complete Invite neighbors to a hard-hat tour before drywall goes up Throw an open house before the first residents move in Share before-and-after photos with the people who watched it happen Why it works: When neighbors feel pride in "their" project, they defend it. They brag about it. They become your best advocates. The Good Developer Pledge Here's my commitment — and maybe you'll take it with me: I will show up as a neighbor, not just a developer. I will listen more than I pitch. I will be transparent about challenges and generous with updates. I will honor this community's past while building its future. I will remember that behind every door is a person who loves this place — just like I do. Because the best developments aren't just built with capital and permits. They're built with trust, respect, and the understanding that you're not developing in a neighborhood — you're developing with one. When you invest in people before you invest in properties, everyone wins. The neighborhood gets a developer who cares. You get a community that supports your vision. And together, you build something worth celebrating. Let's stop seeing neighbors as obstacles and start seeing them as partners. That's how great neighborhoods — and great developments — are made.
A line art drawing of multiple résumé templates spread across a desk.

Finding My Next Chapter in a Tough Market: Faith, Focus, and Stamina

November 13, 2025
Discover how to job search with confidence in an uncertain market. This guide shares my real journey—systems, mindset shifts, LinkedIn hacks, and the “just need one” mantra—to help you create momentum and land the right opportunity.

Why Playing It Safe with Your Finances Could Be Your Biggest Risk: Insights into Real Estate Investment

December 14, 2024
In today's economic landscape, many of us are conditioned to play it safe when it comes to personal finance and investments. Traditional wisdom tells us to stash our earnings in savings accounts, max out our 401(k)s, and avoid the murky waters of seemingly risky investments. This conservative approach is often seen as the prudent pathway to financial security. However, this strategy is not without its risks, particularly in the face of rising inflation and shifting market dynamics. Consider the reality of inflation, which diminishes the purchasing power of your money over time. By parking your money in a savings account with minimal interest or relying solely on retirement funds tied to volatile markets, you are inadvertently engaging in a passive gamble. The gamble here is that what you're doing—or not doing—will be enough to outpace the rising cost of living. This is a risk, a very real one that could jeopardize your future financial stability. Building wealth requires a more active stance. One of the most robust methods for securing financial growth is investing in real estate. My journey into real estate investment began out of necessity. Faced with the daunting realization that traditional savings methods would not suffice for my future needs, I ventured into the real estate market of Washington, D.C. Over time, by leveraging strategic investments, I built a portfolio valued at over $5 million. Investing in real estate isn't just about buying property. It's about understanding market trends, recognizing potential growth areas, and being involved in the economic dynamics of your community. It's a proactive approach to wealth building, which contrasts sharply with the passive risk of doing nothing. Real estate investment offers tangible assets that typically appreciate over time. Furthermore, these investments can generate passive income through rentals, a crucial advantage during times of economic uncertainty. By diversifying your portfolio to include real estate, you're not just betting on market performance; you're investing in a physical commodity that people need—housing. However, becoming a successful real estate investor doesn't happen overnight. It requires education, careful planning, and, most importantly, a willingness to take calculated risks. The initial steps involve understanding your financial landscape and setting clear, achievable goals. From there, educate yourself about the real estate market, perhaps starting with one property and growing your portfolio gradually. The conservative approach of inaction or minimal action can seem less intimidating, but it's a risk in itself—a risk that your future self might not be able to afford. As we look toward a future marked by uncertainties, including potentially higher living costs, it is imperative to adopt a more assertive approach to personal finance. My experience in building wealth through real estate taught me that informed, deliberate action is less risky than cautious inaction. The real risk lies in allowing the fear of the unknown to dictate your financial decisions. By understanding and embracing the risks associated with proactive investment, particularly in real estate, you can secure a more prosperous and stable financial future for yourself and your family. In conclusion, reframe how you perceive risk. Understand that in today’s economic climate, being overly conservative and taking minimal action is a risk in itself. Instead, consider building a diverse investment portfolio that includes real estate to protect against inflation and contribute to your long-term wealth. Take steps today to educate yourself and begin crafting a strategy that aligns with your financial goals and risk tolerance. It’s a journey that requires patience, resilience, and education, but it is undoubtedly worthwhile for those prepared to embark on it.
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