Ask Litra: How Do I Fix a Long-Term Underperformer?

In this episode of "Keys to Success," Litra Simms discusses how to address the issue of long-term underperformance in real estate investment portfolios. Litra stresses the importance of diagnosing the root cause of underperformance, which typically falls into one of three categories: rent issues, operational concerns, or location problems. She suggests pulling twelve months of financial data and comparing it to the local market conditions to identify the cause, and then tailor the solution accordingly. She also advises setting a six-month deadline for improvements and outlines potential strategies for addressing each type of problem. This includes raising rents, streamlining operations, repositioning the property, or even selling and reinvesting in a better location if necessary.