The investors I see succeeding consistently right now tend to:
Underwrite conservatively
Keep liquidity available
Build multiple exit strategies
Move quickly when opportunities appear
It’s less about finding the “perfect” deal now and more about structuring deals properly from the start.
What’s been your biggest adjustment this year?
Hey, Frankie! I’d say my biggest adjustment has been becoming way more disciplined on my buy criteria and not forcing deals just to stay active. A couple years ago you could get away with thinner margins because rates were low and appreciation was doing a lot of the heavy lifting. Now I’m spending way more time stress testing numbers, planning for maintenance and vacancy, and making sure the property still works even if rents soften a bit. I also think relationships matter even more now because a lot of the better deals never really hit the open market. Totally agree with your point about multiple exit strategies too. In this environment, flexibility is huge.
The investors I see succeeding consistently right now tend to:
Underwrite conservatively
Keep liquidity available
Build multiple exit strategies
Move quickly when opportunities appear
It’s less about finding the “perfect” deal now and more about structuring deals properly from the start.
What’s been your biggest adjustment this year?
Hey, Frankie! I’d say my biggest adjustment has been becoming way more disciplined on my buy criteria and not forcing deals just to stay active. A couple years ago you could get away with thinner margins because rates were low and appreciation was doing a lot of the heavy lifting. Now I’m spending way more time stress testing numbers, planning for maintenance and vacancy, and making sure the property still works even if rents soften a bit. I also think relationships matter even more now because a lot of the better deals never really hit the open market. Totally agree with your point about multiple exit strategies too. In this environment, flexibility is huge.
Great points — conservative underwriting has basically become table stakes at this point. My biggest adjustment has been stress-testing deals at two cap rate expansions before I even run the full numbers. If it doesn't pencil there, I move on fast.
The speed piece you mentioned is real. Hesitation has cost me more than bad deals this year. How are you handling the liquidity piece — keeping dry powder in money markets, or something else?