No matter how intuitively
obvious an investment may appear, a thorough analytical evaluation
must be conducted in order to develop a complete understanding
of the investment’s costs, condition, risks, timing, financial
upside, and exit options. Henna principals have many years experience
in financial underwriting and property valuation and frequently
find hidden sources of value, or points of negotiating leverage,
during this step.
The evaluation period is
also the opportunity to begin establishing an extended local
partner network, if not already in place. Henna prefers to retain
local professionals who, not only possess the best understanding
of properties in their metropolitan area, but also typically
possess the fastest turnaround times (since staff are local
and available) at the lowest costs (since travel, shipping,
and other administrative costs are minimized). In addition,
local professionals are easily held accountable for their work
and bring invaluable "on-the-ground" knowledge to
the team.
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