Even those who know nothing about real estate investing know the phrase “location, location, location.” It’s the only real estate investing maxim that’s gone truly mainstream. But is that all there is to it? Is it as simple as driving around looking for the busiest intersection of the most popular town in the most desirable city? Of course not. If location were the only thing that mattered in real estate, we’d be out of a job!
Location is a very important piece to the puzzle, but it’s only one piece. There are numerous other factors that determine a good deal. And, believe it or not, location isn’t even first on the list.
PRICE is the number one consideration in any real estate transaction. Beyond price and location, other considerations include building quality, tenant creditworthiness, remaining lease term, and the list goes on.
Investing in real estate involves putting all these different pieces together to determine the intrinsic value. And the goal of any real estate investor is to acquire properties at a discount to value.
Eliot Bencuya is the co-founder and CEO of stREITwise. Eliot has extensive experience identifying, underwriting, and executing value-add real estate investments.
Prior to forming stREITwise, he was a Vice President of Acquisitions for Canyon Capital Realty Advisors and the Canyon-Johnson Urban Funds, where he was responsible for originating, underwriting, structuring and executing transactions in the Pacific Northwest, Northern California and Midwest regions. Mr. Bencuya also held positions at Sovereign Investment Company (a subsidiary of the Marcus and Millichap Company) and the investment banking division of Merrill Lynch & Co. He holds a Bachelor of Arts degree in Economics and International Studies from Yale University, and a Masters of Business Administration degree from the Haas School of Business at the University of California, Berkeley. Mr. Bencuya is a member of ULI.