The global economy inevitably impacts the real estate industry. It is also true that many investors have been using it as a crutch to avoid starting to invest in real estate—or move to the next level.
Leveraging the current reality is the key to growing your portfolio, regardless of market conditions. With more than 27 years of combined experience and a portfolio valued at $130 million, we focus on what we have control over and establishing specific criteria to create “our economy.”
Establish Your Criteria
Instead of sharing theories, let’s look at a real-life example. Recently, we partnered on a 670-unit portfolio project in two states—North Carolina and Kentucky—valued at $60 million. You might be asking, “How were you so comfortable partnering on such a large project in the midst of everything that’s going on right now?”
By establishing specific criteria, we were able to mitigate the risk while being in alignment with our goals. One of our criteria is to underwrite conservatively. Here’s what we mean by that. This project has a current 97% occupancy. There is a 70% breakeven occupancy in Year 1, which means if we have 70% of the units occupied and paying, we can meet all our financial obligations. Phrased another way, as long as 200 residents don’t move out overnight, we are able to meet our financial obligations without having to seek different funding sources to cover it.
Another key piece of criteria is to have other properties and teams already in place. Our partners currently have a strong market presence in the North Carolina and Kentucky markets and have established property and construction management companies. This structure allows us to reduce our payroll, which results in significant savings due to the size of these buildings.
Find Your Community
Struggling to create your own criteria? Many investors, especially women, have mastered the art of figuring things out themselves, simply because they are already capable of building successful businesses on their own. The truth is “doing it alone” can limit your ability to scale. We don’t always know what is holding us back from taking our business to the next level. We need a community that can see our blind spots and support us by bringing other perspectives, skills, and experiences to the table.
For those looking to take back control of their “own economy,” we invite you to join us for InvestHER CON on June 23 and 24 in Charlotte, North Carolina. This is more than a traditional real estate conference. It is a full-circle transformational experience created with women investors’ needs, desires, and schedules in mind. There will be five keynote speakers, including Kim Kiyosaki, as well as 20 sessions that will push your boundaries, expand your mindset, and promote deeper connection among the attendees. Get your ticket today at www.therealestateinvesther.com/investhercon.