👋I don't care about deals that were 'successfully' exited in 2021.

[Justin Goodin]

I don't care about deals that were 'successfully' exited in 2021.

Here's why:

→ Real estate market was on fire
→ Interest rates were at historic lows
→ Market appreciation was outrageous

Sponsors could buy a property
do basically nothing to it
and sell 1-year later for a huge profit.

Those days are over.

The market in 2021 saved a lot of bad deals (and sponsors).

Longer term holds, operations, and successful asset management practices will be critical moving forward.

- -

✅ How can you verify a successful exit?
→ Compare actual performance to original underwriting projections.

Was the property sold due to market appreciation? Or based on the real value from a strong NOI?

What are your thoughts about this? Should passive investors care about deals that were exited in 2021?