Pick Better Investments

12/7/2023

22 minutes

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Pick Better Investments

About this podcast

Join us for a compelling conversation with Nathan Loy as we explore the dynamic investment landscape. With cap rates on the rise and asset prices dipping, reminiscent of favorable markets, Nathan shares valuable insights on making informed investment decisions.

Connect with Nathan Loy: https://www.linkedin.com/in/nathanloy

Connect with Ravi Gupta: LinkedIn – https://www.linkedin.com/in/ravi-gupta-md-a23677107

Email – [email protected]

Key takeaways

  1.  Operator’s Track Record: Dive into an operator’s history, experience, and team credentials for a glimpse into their ability to execute new deals.
  2. Red Flags: Identify warning signs related to operators, such as frequent joint ventures or legal issues, to mitigate risks.
  3. Location Significance: Understand the impact of a property’s location by analyzing factors like market rents, occupancy trends, and employment drivers.
  4. Property Metrics: Scrutinize key property metrics, including occupancy rates and rental rates, ensuring alignment with the investment strategy.
  5. Business Plan Scrutiny: Ask detailed questions about the business plan and projected returns, scrutinizing assumptions for achievability.
  6. Assessing Assumptions: Review underwriting methodologies and assess the reasonableness of assumptions for a more realistic outlook.
  7. Due Diligence: Rely on the operator’s due diligence while independently analyzing rents, demand drivers, and financing. Question and verify details.
  8. Enhancing Diligence: Tap into online resources, real estate associations, brokers, property databases, and local connections for a broader perspective.