10d • General discussion
Tuesday: How to Identify Fragile vs Strong Deals
Most deals don’t fail because they were terrible.
They fail because they were fragile.
What Is a Fragile Deal?
A deal that only works if:
• rents hit projections
• repairs stay low
• nothing unexpected happens
What Is a Strong Deal?
A deal that:
• has margin
• handles variability
• still works under pressure
Where Margin Comes From
• buying below value
• strong rent vs cost gap
• manageable expenses
• realistic assumptions
Common Mistakes
• chasing thin deals
• ignoring downside
• relying on perfect execution
Action Step
Look at your last deal.
Would it survive if things went slightly worse?
Discussion Prompt
Where do you think most deals lose their margin?
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Tuesday: How to Identify Fragile vs Strong Deals
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