Reed locates assets in markets with strong population, job and GDP growth. Within each market he will identify sub markets that are within the true “path of progress”; some of the metrics that indicate robust growth are strong school districts, high house hold incomes (HHI), average cost of homes within 1/3/5 mile radius, identify the biggest employers within the area, crime statistics and much more.
In terms of the asset itself, Reed likes to buy value-add assets in his chosen market/s. A good indication of “value-add” is when the in-place rents are well below market rents in the surrounding area – this means there is room for massive improvement. Reed will look to maximize on these rental discrepancies by improving property management, full exterior renovations to increase curb appeal, rebranding the asset, adding new amenities, improving online marketing, and implementing an interior renovation plan for all units whilst keeping the asset over 90% occupied.