How to Analyze Multifamily Investment Opportunities

Follow along as we conduct a market analysis for the jumpstart deal. 

We conduct a financial analysis of the deal using our multifamily investment model.  Here we explore what the simple scenario of buying and holding might look like.

We conduct a second financial analysis of the jumpstart deal, but this time we look at a buy, renovate, then hold strategy and see what that might look like.

Quick recap of the jumpstart example.  

Learn about the three levels of market research that we'll explore in this section.

But before you can analyze, you need to know where to find your data.  Here we'll go over some of the best sources for obtaining your data. 

In this lecture, we'll go over the key aspects of conducting market research at the regional level.  What do you need to look into?

In this lecture, we'll go over the key aspects of conducting market research at the neighborhood level.  What do you need to look into?

In this lecture, we'll go over the key aspects of conducting market research using competitive research.  How do you select the right competitive properties, what do you compare, etc...

What part of the investment process make up the acquisitions portion?  What will be cover in this section on acquisitions?

Most of you want to buy and hold a multifamily property indefinitely and most will involve refinancing the deal.  

In this lecture you will learn how to maximize value of the property by physical improvements to the asset or improving the management of the property.

What is the Letter of Intent and what are some of its common elements?

What are some key parts of the Purchase and Sale Agreement you need to understand?  Part 1 of 2

What are some key parts of the Purchase and Sale Agreement you need to understand?  Part 2 of 2

A quick overview of the Investment Analysis topics covered in this section.

Investing in real estate can be risky. In this lecture you will learn how to minimize your risk and feel good about your real estate investments.

Why you need to buy on actuals even when you invest for potential.

What is the gross rent multiplier, how to use it, and what are it's limitations.

Review of the capitalization rate metric and why it's more useful than the GRM

What is the Loan to Value and when will you see this?

The debt service coverage ratio is an important concept in real estate finance. In this lecture you will learn what debt service coverage ratio (DSCR) is, how to calculate it and how to use it. 

No matter what you're analyzing, it all comes down to how it could affect cash flows.

Understanding a property's cash-on-cash return and when to use this equation is vital for real estate investing success. In this lecture you will learn what it is, how to calculate it and how to use it. 

Learn what rule of 72 is and how to use it. It's great for quickly understanding how long it will take for your money to double in value. 

When evaluating a real estate investment, there are two different ratios regarding returns that an investor should consider: equity multiple and internal rate return (IRR). In this lecture you will learn what they are, what’s the difference between them and why they are often reported together.

In this lecture you will learn what tax benefits come with real estate investing. 

When you analyze a multifamily property for acquisition, your analysis must include a thorough review of the rent roll. In this lecture you will learn what rent roll is, what can include and why it should be analyzed.

What is the "real" vacancy of a multifamily apartment building?  Based on months occupied? Nope.

In this lecture you will learn about pro-forma and actual statements. Also, you will find out when and what you should be able to review from the actual statement.

The main source of income on most any property is usually the rent existing residents but most properties have other income opportunities. In this lecture you will learn about other income budget items.

In this lecture you will learn how to analyze current and potential expenses in several areas. 

Expense ratio is very common measure in real estate analysis. In this lecture you will learn what the operating expense ratio (OER) is, how to calculate it and how to use it. 

In this lecture you will learn what are capital expenditures and what they generally include.

This lecture will tell you what repair allowance is and why you should ask for it at purchase.

In this lecture you will learn what are critical items in multifamily operations and financial statement analysis.

In this lecture, we will walk you step-by-step through an actual income statement. You'll learn how to read it and what important items to look for. Part 1.

In this lecture, we will walk you step-by-step through an actual income statement. You'll learn how to read it and what important items to look for. Part 2.

In this lecture you will find out why joint venture is formed, which are its advantages and disadvantages.

A key term to a real estate private equity deal is the sponsor “promote”. In this lecture we will define the sponsor promote, explore how promotes work and explain how they are justified as well as how they benefit both sponsors and investors.

It can be difficult to determine how a carried interest/promoted interest deal structure will impact the sponsor and investor financially. In this lecture, you'll be provided with a JV waterfall model and we'll show you, step-by-step, how to use it. This file is for annual cash flows.

It can be difficult to determine how a carried interest/promoted interest deal structure will impact the sponsor and investor financially. In this lecture, you'll be provided with a JV waterfall model and we'll show you, step-by-step, how to use it. This file is for monthly cash flows.

What do we conduct due diligence and what are some common recommendations?

Is your strategy feasible? In this lecture you will learn how to find answer to this question.

This lecture will tell you why resident profile accuracy is important and how can good resident profile information help you analyze occupancy conditions, rent collection practices, and resident selection criteria.

In this lecture you will learn why a thorough physical inspection of both the interior and exterior of the subject property is necessary. 

In this lecture you will learn about zoning restrictions, rent control, building codes, and infrastructure.

The lease audit is an extremely important part of your due-diligence. In this lecture you will learn what is it and why do you need it.

In this lecture you will see a list of items to investigate as part of an acquisition analysis.

Even if you found a great deal, poor property management could kill an investment.

What are your options for property management?

How can you find a good property management firm and what are benefits of hiring a property managers? In this lecture you will find answers to those questions.

This lecture we introduce you to multifamily staffing and general rules of thumb when it comes to staffing small, medium, and large apartment buildings.

What are some common fees involved when hiring a 3rd party property management company?  And what are some things to avoid.

Low occupancy rates can indicate that a piece of real estate has a problem. Learn what usual causes are.

The essence of an investment in real estate is a good tenant. In this lecture you will learn how to find and secure good tenant.

In this lecture you will learn about pricing strategies in different parts of an building.

A rent matrix is a visual and analytical tool for determining rents. In this lecture you will learn how to use it and when to use it.

How to find a software that fits your situation.

What is RUBS and why you should consider it for your multifamily deal.

In this lecture we will introduce to you a basic multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 4-plex apartment building.  Part 1.

In this lecture we will introduce to you a basic multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 4-plex apartment building.  Part 2.

For the Property Value Breakdown, Land should be 15% and Improvements should be 85%. The two are switched in the model. Thanks!

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 1.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 2.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 3.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 4.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 5.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 6.

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 7.

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 1.

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 2.

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 3.

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 4.

In this lecture you will learn what are differences between building an apartment building from the ground up and acquiring an existing asset.

While the process may vary slightly from project to project, in essence all property developments must go through the 8 stages. In this lecture you will learn what those stages are.