Pro Tip - Assumptions are Fundamental

[Trevor Richardson]

2023 isn't the easiest year to make deals work. But one topic always inspires my real estate coaching side, assumptions.

Get comfortable with assumptions. I’ll say it again, GET comfortable with assumptions. Assumptions on potential rents, interest rates, management fees, operating expenses, rehab amounts.

While looking at deals you won’t always be able to figure out every detail and amount to the dollar, but you can get close with accurate assumptions. Work on figuring out your accurate set of assumptions and have confidence in those numbers. We are seeing investors miss on good opportunities because they are not comfortable with assumptions in 2023. 

Point - This is an assumption business! There is no way to avoid that, it’s fundamental to real estate investing. Large real estate companies that own 10,000 units base their acquisitions on assumptions. It’s really the only way to analyze multiple deals and help make a purchase in a slow and tough year.