Wayne Courreges III of CREI Partners explains how real estate investors stress-test deals against slower rent growth and higher refinance rates. He walks through contingency measures like extra reserves and multiple exit strategies, and argues that experienced operators with foresight protect passive investors from downside risk.
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Do you check the safety features before buying a car? Smart investors do the equivalent with deals. Hi, I'm Wayne Courage iii, managing principal of CREI Partners. Passive investors want to know that not only is there upside, but there are plans in place if things don't go as expected. Essentially. What's Plan B or C? We address this head on by sharing our contingency plans. Maybe it's extra reserves. Maybe it's an option to convert apartments to condos if rental demand shifts, or having multiple exit strategies. Sale or refinance Investors appreciate hearing scenarios analyzed, like how the deal performs if rent grows slower than projected, or if interest rates are higher at refinance. By stress testing the deal and showing those results, we speak to that desire for safety nets. Additionally, having experienced operators who have been through downturns gives investors confidence and someone at the helm knows how to navigate rough waters. It's not all about rosy projections it's about demonstrating foresight. A deal with great returns is nice, but a deal with great returns and solid risk mitigation is what passive investors are really looking for. Want to see how we plan for the what ifs so you can invest more securely? Join our free Passive Investor coaching program@ passiveinvestorcoaching.com Discover how thorough risk planning is a cornerstone of our investment approach.