War Stories, Near Misses, and Victories

[Michael Pittman]

What would you tell your younger self on day 1 that you started working on a MF acquisition that you either learned the hard way, avoided by luck, or triumphed over.

For instance:

I was listening to a Rod Khleif podcast and heard someone mention a strategy for raising rents and keeping the tenants on a property they acquired. He said that they purchased an asset with rents that have not increased in 5 years (can't remember exact amount). And immediately they went to the tenants and said "hey we both know that your rent hasn't increased in X years. And we both know that's not normal. Now I'm not trying to gouge you but I am running a business." He went on to mention that he raised the rents to just under $15 below market rate, and got the tenant to sign a 3 year lease if they would agree to allow a remodel (which he gave them a selection styles to pick from).

Thus, he was able to significantly accelerate the asset stabilization process from the very beginning by increasing rents, remodeling, and getting new leases.

What's your success, failure, or near casualty that you escaped?