When Property Performance Doesn’t Meet Proforma, Investors Lose
Published November 05, 2024 on GlobeSt.com
It’s a tale as old as time: the acquisition team scopes out a property, generates a proforma, closes the deal, and hands off the property to the asset management team who must then make the property live up to the proforma. When that doesn’t happen, the acquisition blames asset management and vice versa. No one wins, especially not the investors.
Some investment real estate firms are learning that there doesn’t have to be a disconnect between acquisitions and asset management. Integrating asset management objectives into the acquisition due diligence process results in a more accurate proforma that mirrors an executable capital plan. This approach can also streamline the onboarding of newly acquired assets and, in the long run, even save money and time. It requires upfront communication and a savvy due diligence consultant, as well as an understanding of some property life cycle fundamentals.
In this Globe St. article, Partner’s team discusses how to keep investment properties on track through accurate due diligence data.
