The topic of downside protection is of particular importance right now as we are all going through this current crisis and period of instability. Our guest, Tauheed Siddiqui, is here to discuss his thoughts on the subject and how he and his company, TAAS, have gone about preparing for the more difficult times. He mentions conservative underwriting as the best place to start with a safety net. He also explains the importance of the market in which you’re investing in and how you prepare before reminding us of the power of liquidity; you do not want to be going into a downturn without any cash! Tauheed is very generous in sharing some of the strategies he uses and is currently using to make it through the troubled waters, and from there we move onto leases and renewals and hedging known and unknown factors. For Tauheed, an intimate relationship with the data as well as close links to his property management company are what helps him sleep at night. Listen in with us for this episode of Asset Management Fridays, to get it all!
Key Points From This Episode:
- Tauheed's work in real estate and land development.
- The three key components of downside protection; underwriting, location, cash-reserves.
- Setting aside a percentage of a purchase price for this downside period.
- The knowns and unknowns and hedging these in the smartest ways for the future.
- Examples of how Tauheed manages during downtimes; working with tenants and more!
- Lease renewal practices during the pandemic — aligning with tenant needs as much as possible.
- Tauheed's asset management superpowers: relationships and data.
“The bottom line is, during the headwinds, would you be able to keep your head above the water?” — Tauheed Siddiqui [0:03:49]
“I just keep communicating to my property management company. The more you have a system, the more it is going to help our bottom line.” — Tauheed Siddiqui [0:05:57]
“You always want to be very careful with the expenses but more so now. So cut where you can and even revise some agreements if possible.” — Tauheed Siddiqui [0:05:57]
Links Mentioned in Today’s Episode: