Anna Kogan

It's surprising the amount of deals that fall through because the seller wasn't transparent upfront about a property's condition. While the inspection period is meant to uncover defects, a seller's failure to disclose known issues sets off red flags for buyers and can cause them to back out, even over small issues. So, sellers, if you know there are issues: disclose them early! it gives you control over the narrative and shows buyers you’re acting in good faith. In most cases, it’s not the issue itself that kills the deal, it’s the surprise.

And beyond securing adequate financing, you must also understand how to leverage that capital throughout the project lifecycle. Smart financial resource allocation from the outset can significantly impact your project’s viability and returns. For example, strategies like earnest money deposit financing eliminate the need to tie up significant operating capital in escrow during lengthy due diligence, freeing it up for pre-development phases such as rezoning or permitting. Understanding the strategic implications of embedded options within your financing agreements is also paramount. This includes knowing when and how to strategically exercise options like prepayment penalties or earn-outs to optimize your capital structure.

Under current market dynamics, investors will want to know specifically how you will manage inflation and tariff-related risks. So, start with a detailed risk-adjusted ROI analysis that explicitly includes inflation/tariff impacts and mitigation strategies, showing realistic and conservative return projections. Based on these considerations, some strategies are: For inflation: Implement flexible budgets with strong 10-15% contingencies, adopt phased development for market adaptability, and continually perform value engineering for cost optimization. For tariffs: Diversify your supply chain with domestic and favorable trade sources, reduce reliance on tariff-vulnerable imports, and prioritize early procurement of materials at risk of tariffs

Engaging early is definitely the way to go. The sooner you understand the local concerns, the quicker you can address them and avoid issues down the line. Make sure to explain how the project benefits the community and improves local services. And most importantly, before starting any project, carefully consider the needs and goals of the neighborhood so you can offer the type of accommodations and services they truly want and will get behind. This not only will help gain their support but also contribute to the profitability and long-term sustainability of your project. Lastly, something that should go without saying but it’s important to remember: be honest, willing to listen, and keep the lines of communication open.

Whether it’s a Class A or C, multifamily or office, every investor has faced high vacancy rates, especially in today’s market. There’s not a one-size-fits-all solution, but depending on the property type, you can try: - Office: Create a niche tenant mix by targeting on-demand industries like healthcare, education, or tech. - Industrial: Offer advanced logistics solutions, like cold storage or tech-enabled spaces for specialized industries. -Multifamily: Add services like on-site storage, fitness centers, or flexible lease terms to attract tenants looking for more convenience. And overall, you can try leveraging technology to gather data on tenant needs and adjust leasing offers, prices, and amenities as you go.

To analyze property data effectively, go beyond just comparing sale prices: - Look at the property’s price per square foot over time and how it correlates with local development projects. - Assess rent-to-price ratios in the local area, not just for immediate comparison but for understanding future trends. - Use tools like regression models that factor in variables such as location, amenities, and property condition over time. - Track local tax assessments, as these can give valuable insight into a property’s long-term value potential. When you combine these detailed data points with your local knowledge, you can reach that price point that is both competitive and true to the market’s current trajectory.