What are the aspects of a good deal? What do I look for?
I look for experience of the operating partners. I look for the deal location. I look for the trends in the submarket of the location. I look for major employers. I look for growing demographics. I look at the ratio of the deal’s cost and average cost per door compared to the housing costs. I look for obviously the numbers on the deal, the assumptions, the underwriting behind that, such as the revision cap rate, the entry cap rate, the growth in expenses, growth in income, and I look at the business plan.