One of the most important skills we’ve developed:
The ability to move fast while still accounting for the details.
After underwriting hundreds of properties, we typically know whether we have a deal or not within 10 minutes of looking at it.
We’ve memorized every portion of local zoning codes, know the price per sq.ft costs across neighborhoods, have a strong sense for insurance pricing (though we always have it priced out well before closing), know which locations to target and avoid, understand the rental rates we can receive today based on the condition/location, can closely estimate renovation costs on a per unit basis, and learned every portion of property tax assessment schedules to nail that upcoming tax bill.
5 transactions and dozens of what we thought could be transactions have also refined our underwriting in terms of operational expenses and maintenance costs.
Pulling data from existing portfolio properties in the same area provides valuable insights and better solidifies our inputs.
The ability to move quickly while still being confident in your underwriting only comes from local expertise and granular knowledge of the development processes in it.
Good deals don’t sit out around, and we account for that through the above.
We’re still a long way from perfect but continue to refine our processes and seek out more angles to create value for us as well as our surrounding communities.