This episode of the Heartland Multifamily Show is the third part of a series consisting of three episodes focusing on DEFCON 3, 2, and 1. In the context of our discussion, DEFCON is a term originating from the Cold War, used to indicate the military’s preparedness to respond to the threat of a nuclear strike. It stands for “Defense Condition” and ranges from 5, representing a state of peace, to 1, indicating the possibility of World War 3. In this particular instance, we are referring to DEFCON 1 in relation to a multifamily investment company facing financial difficulties and potentially declaring bankruptcy.

It’s important to understand that a company reaching DEFCON 1 status didn’t reach this point overnight. It wasn’t a sudden realization that they were out of funds. Instead, it typically involves several months of observing their profits steadily decline until they turn into losses. During this period, they may have made numerous uncomfortable appeals to investors and banks, seeking second chances and financial assistance. Eventually, they come to the stark realization that they can’t prevent their business from sinking, and they must make the difficult decision to discontinue their operations.

However, it’s worth noting that what may be a loss for one party can present an opportunity for another, provided you have the knowledge and tools to identify and assess these opportunities properly. To discover how to recognize such opportunities and conduct thorough due diligence to potentially secure a valuable property deal, tune in to this episode of the Heartland Multifamily Show.