With the current condition of our real estate marketplace it is time to get back to basics...make sure the fundamentals make sense. This is something that I will keep putting out there.
Long gone are the days of buying a highly leveraged property at a 9 Cap and waiting a year or so then selling it at a 7.5 Cap. With financing harder to find and LTVs heading south, any acquisition must make financial sense. There is little wiggle room for error. There is no rising market to bail out a serious mistake in judgment or assumptions. It makes the buyer’s due diligence even more important than ever.
I just finished reading a great article in CIRE magazine that was geared toward a commercial property but the concepts should be used for all investment real estate reviews. The article can be read here CIRE Magazine Due Diligence: Digging Deeper
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.