Investors reviewing deals, unrealistic timelines will kill your returns faster than a bad property.
Here is what most people miss.
A sponsor shows you a plan.
Renovate units.
Raise rents.
Increase value.
And they say it will all happen in six to twelve months.
Sounds efficient.
Sounds exciting.
But look closer.
If a 100 unit property is 90 percent occupied, that means 90 units are full.
You cannot renovate units that are occupied.
You have to wait.
Non renew leases.
Turn units over.
Renovate.
Then lease them again at higher rents.
That takes time.
And if a sponsor tries to rush that timeline, occupancy drops fast.
Cash flow drops with it.
Now you are not executing a plan.
You are digging out of a hole you created.
A strong deal has a timeline that matches reality.
Not a timeline that sells the upside.
When you review a deal, does the timeline actually make sense based on how the property operates?