Mid-Covid/Post Covid strategy

4 Replies

Certainly different. Underwriting my deals more conservatively, stress testing the deal (increasing cap rate by 1-2 points, making sure the deal still pencils out at 65% economic occupancy, etc.), having ample reserves (6 months-1 year), etc. There are still deals out there, but I am assuming that Covid-19 is still an issue a year from now. Maybe I'm wrong, but it's better to be prepared.

Reducing at least one per year and buying if it makes sense without too much effort.  

Better and easier deals should be on the horizon with cash but look for credit to tighten.  A lot of lenders are already requiring covid status letters from employers.