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How Do You Identify a Real Estate Deal Using a Conservative Approach?

In the real estate market, not every lead is a deal. How does one adopt a conservative approach to differentiate between the two before presenting opportunities to investors? According to Craig, it starts with meeting certain criteria. 

For a deal to be considered, it must fit within specific parameters such as unit count and return profile. For example, they typically look for properties worth at least $30 million and with over 150 units.

Environmental factors also play a crucial role. Properties in flood zones or areas with FEMA problems are generally excluded due to the unnecessary risks involved.

A compelling return profile, adjusted for risk, is essential. Despite many claiming conservative underwriting, true risk-adjusted returns fall between a 16% to 19% IRR. This thorough vetting ensures only the most viable opportunities are presented to investors.

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Thank you to all of our listeners!!! We would love to hear from you!!!

Email me at:
[email protected]

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Visit our website to find out more:
www.hsquaredcapital.com

Join our Facebook Group:
The Multifamily Real Estate Experiment

Follow us on Instagram:
@hutchthemarineinvestor

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Thank you to all of our listeners!!! We would love to hear from you!!!

Email me at:
[email protected]

*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*=*
Visit our website to find out more:
www.hsquaredcapital.com

Join our Facebook Group:
The Multifamily Real Estate Experiment

Follow us on Instagram:
@hutchthemarineinvestor