Had an interesting tour yesterday of a building we probably won’t buy.
The reason it was interesting is that we were reminded, yet again, of how differently we look at acquisition targets.
The broker began to give us a whole spiel about how many of the units had been renovated, what the rents were, how those could be raised, etc.
We politely cut him off. Why?
Because we don’t look at properties as going businesses; instead, we look at them as raw material to be transformed.
So, we spent the vast majority of the tour carefully inspecting the common areas, measuring the units, and trying to distinguish between cosmetic and load-bearing walls, all in an effort to figure out what we really do care about: What the property can become.