Most people assume real estate investing is about finding a good deal and moving quickly. Speed matters, but it’s the quality of the evaluation before you move that determines whether you’re making a good decision or just a fast one.
Here is an honest look at our acquisition process — what we check, in what order, and what makes us walk away.
Step One: The 60-Second Filter
Before anything else, a property has to pass a quick gut check. Does it fit our buy box? We have clear criteria on property type, minimum square footage, location characteristics, and condition. If it doesn’t fit the box, we move on immediately. Discipline at this stage saves an enormous amount of time.
Our core buy box criteria
- Residential single-family or small multi-family
- Capable of generating income through rental or development
- Within our operational coverage area
- Not so distressed that rehabilitation cost negates margin
- Clear title with no significant legal encumbrances
Step Two: The Numbers Pass
If a property clears the initial filter, we run the numbers — and we run them conservatively. We use realistic rent comps, not optimistic projections. We use actual contractor quotes on known repairs, not estimates. We stress-test the deal at 75% occupancy for STRs, not 90%. If the deal only works if everything goes right, it doesn’t work.
A deal that looks great on paper under ideal assumptions is a risk. A deal that works under stressed assumptions is an opportunity.
Step Three: The Physical Walk-Through
We walk every property personally before making an offer. No exceptions. Photos lie, sellers omit, and the things that cost the most money to fix — foundation, roof, HVAC, electrical — are never obvious from a listing. We bring contractors to any property with meaningful uncertainty on repair scope.
What Makes Us Walk Away
The most valuable part of a rigorous process is knowing when to stop. We walk away when the numbers only work with best-case assumptions, when repair scope is unclear and the seller won’t allow proper inspection, when the neighborhood trajectory is negative, or when something simply feels off. Trusting judgment — informed by experience — is a real part of the process.
We’ve passed on deals that other investors took. Sometimes we’ve been wrong. More often, we’ve been right, and our portfolio reflects the discipline of saying no as much as saying yes.