Cannot agree with that line. Maybe its my institutional upbringing, but we mitigage every conceivable risk we can before acquiring an asset.
We never ‘hope’ an area is going to improve. In fact we never count on anything that we cannot control ourselves.
We make money through buying assets with high credit-adjusted yields (and cap rates) on long leases (15 years)which will take us in/out/in of multiple real estate cycles. This allows us to ride out bad times and sell into good times. In the meantime we get north of 10% yields with investment grade tenants and corporate guarantees on NNN leases.
I appreciate the many views of making money in real estate, however, I believe that people way under appreciate risk factors and how hard/fast they hurt your portfolio/property if your area doesn’t turn around during your hold period…if ever.
