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Intersting thread so far ! Thanks for the feedback. Can you provide some insight into your due diligence process? What do you look out for most? What kind of IRR or ROI is generally your goal?Still moving forward with this venture, here is where i am at:
1. Building a massive pipeline of deal flow. Right now I am sent around 50-100 properties per week to analyze.
2. I have perfected our due diligence process and ROI/IRR analysis. Within 10 minutes I can say yes or no to any property that meets our criteria.
3. Sending out LOIs on a daily basis.
Right now rates are going up and property owners/brokers are stuck in there thinking that rates are still falling/staying low. Therefore, most owners/brokers are asking too much and haven't had to deal with a rising rate environment in a very long time.
Basically a waiting game to start deploying capital..
You mentioned a waiting game and an overpriced market.. how much of a discount do you suggest / do your LOI's reflect? I've also noticed assets being over priced and wondering when/how soon we can expect a correction.
Thanks again!
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