The Art of the Quick ‘No’: Nick Curum on Efficient Property Deal Screening

In a recent LinkedIn post, Nick Curum shares his strategy for rapidly evaluating property investment deals, emphasizing the importance of a decisive initial screening process. Curum highlights a common pitfall for investors: rejecting deals based on instinct without being able to articulate the reasons, which can lead to losing out on promising opportunities.

Curum states:

I reject most property deals on instinct within 30 seconds. For years I couldn’t explain why, and that cost me the ones actually worth keeping.

This initial gut feeling, while often accurate, can be difficult to defend when challenged by agents. Curum suggests that the gap between instinct and explanation is where the traditional first-pass screening often falters. He clarifies that artificial intelligence, while useful, doesn’t bestow better instincts; rather, it helps make existing instincts defensible.

The Purpose of First-Pass Screening

Curum redefines the objective of the initial screening phase. He argues that its primary function is not to prove a deal’s viability, but to determine if it warrants further, more in-depth investigation and time. Rushing to a ‘yes’ prematurely, according to Curum, can result in wasted hours on deals that ultimately fall apart during later stages, such as the survey.

He elaborates on this point:

A fast, clear no protects those hours for the deals that matter.

The effectiveness of this rapid ‘no,’ Curum explains, is directly dependent on the quality of information used in the initial assessment. Relying solely on price and photos is insufficient, as these factors alone will flag very few deals. Instead, Curum advocates for incorporating essential data points like rental evidence, running costs, and the answers provided by the agent.

Leveraging Data for Better Judgement

According to Nick Curum, integrating these key data points into the first look is crucial for identifying potential issues early on. He notes that a deal might appear attractive at first glance, but a closer examination of the margin, informed by actual running costs and rental evidence, can reveal underlying problems.

Curum emphasizes that this refined screening process does not aim to replace an investor’s judgment. Instead, it ensures that any deal reaching the investor’s desk has already passed a rigorous initial assessment, rather than a superficial glance.

None of this replaces judgement. It just means the deal that reaches your desk has already survived a proper first look, not a glance.

For those interested in implementing a more robust initial screening, Curum offers to share the specific prompt he uses. This offer, made in his post, underscores his commitment to fostering better practices in property investment and capital allocation.