What we look for, where we look, and what we are unwilling to do. Acquisitions are constrained by a written set of criteria, narrow on purpose, revisited rarely.
We do not look at every property. The thesis filters quickly, most opportunities are eliminated in under a minute for failing one of the boxes below.
The criteria are deliberately conservative. They will cause us to miss positions that would have performed. That is the cost of being right about the ones we own, not maximizing the ones we see.
Geography, asset class, and basis on first look. Most opportunities are eliminated here. No deeper diligence on positions that fail the box.
Conservative income, expense, and reserve assumptions. No upside scenarios. If the position does not work on these inputs, we do not advance.
Walk-through with the operations side. Maintenance load, tenant profile, and management complexity are weighed against the in-house team's capacity.
Financing structured to thesis constraints. Closing conducted directly. The position transitions to operations on Day One, no transition period, no third-party hand-off.
"The best acquisition decision is usually no acquisition. The thesis is structured to make that the default outcome, and to make the few we approve durable."