Over the past month we have been diligently working on a property that we had under contract with a few other operators. It was in the Charlotte MSA, had a ton of valve add potential and a strong team, we were excited to say the least.
Last week we had to walk away. During DD we uncovered the fact that this project would require substantially more capital than we initially expected which would significantly reduce returns, not to mention increase risk.
Although we did not want to walk away from a great asset our number one priority is to keep our investors happy. This means:
✔️ Preserving capital
✔️ Hitting our projections
If we cant do that then we shouldn't move forward. Its that simple.
Below is the full conversation we had, we spoke about:
1. The Importance of a Great Team
2. The Asset
3. The Business Plan
4. The Market
5. Due Diligence