…who didn’t also renovate tons of apartment buildings, I would:
- Run rent surveys across all relevant neighborhoods, all the time
- Constantly poll my clients about construction costs for different finish levels and unit sizes
- Constantly poll my clients about eviction / tenant relocation costs
Why would I do all these things?
Because, without the above information, I would:
- Ignore some deals which I absolutely should push my clients to buy; and
- Push my clients to buy some deals they absolutely should not buy.
Both of the above mistakes would cost my clients money (either in bad deals or missed opportunities) and therefore cost me credibility.
Fortunately for me and for our clients, Adaptive does so many renovation projects in the relevant neighborhoods that we know better than anyone what the above numbers actually look like. That doesn’t mean we don’t make mistakes, but it does mean those mistakes are rarer and less costly than they would otherwise be.