Ep. 404: Key steps in underwriting deals! – Multifamily Foundation | Jason Yarusi


This is the real estate foundation your
show from massive action with proven results raise your life and your legacy
with real estate so before we dive into the show we
wanted to say thank you so much for all the listeners out there it’s always
great to have you dive in with us and all these great topics we were to have
anybody have and if you want to hear more about us go to URI Holdings comm
you can find everything about us from projects we’re working on more about our
team members how we break it up and all the resources we offer and if you want
to invest learn more about investing with us there also make sure to check
out our multi-family meet up if you’re local here in New Jersey
you’re on the new jersey multifamily investment meetup and it happens to be
every second Tuesday of the month here in north-central Jersey so if you’re in
Pennsylvania New Jersey New York make sure to check it out and lastly if you
want to learn more about investing in the apartment buildings go to
multifamily foundation calm all right check out the show Monday everyone
welcome to the real estate investing foundation podcast with Jason and peely
today is multi-family Monday where we dive in on topics all related to
multifamily so today we are focusing on underwriting deals and this can be a
very scary process if you haven’t done it before so if you are out there trying
to find multi-family property and you haven’t gotten yourself Lewin with how
to underwrite deals well how are you gonna know if you found a good deal you
need to make sure that you’re doing to work finding the time to underwrite as
many deals as possible even if it’s to a point that you’re not actually actively
going to offer on it but just so when you are ready you know what a good deal
looks like and if you don’t know how to learn about underwriting there’s a
number of different ways you can read multiple books there’s a number of
different platforms online you can watch youtube videos and when you do find
deals and you do do your underwriting it’s best to have other partners or team
members check your work and if you’re saying well I don’t have other partners
your team members well you do but maybe you’re not thinking of them as other
partners and team members the brokers who are you bringing your deals well
they’re your partners they’re the ones who are bringing the
deals and hopefully you can align with them on many deals in the future and
they want you to buy the deal just as much as you
want to find a deal so getting their access to a ton of information on other
deals that they’ve done to know what is the per-unit expense is expected for an
owners paid property in the area or what is the rent comms well that’s one step
you can take to a line with one another partner but to you can also now gain a
relationship by going to them and getting clarity remember though that you
have to look at it both sides brokers also are trying to sell you a deal so
you have to make sure to fact check everything and not take everything for
face value but also you can use other partners your property managers they’re
the ones who are gonna put together your plan so when you’re underwriting a deal
and you’re going the fact that you think either you’re going to be able to cut
expenses here or do rent bumps there or you’re gonna be able to enable pet fees
there are the ones who are gonna be able to give you that guidance whether or not
they’re gonna make these steps able to happen if they feel comfortable with
able to complete this plan that you have for the property lastly don’t forget
about your lenders lenders underwrite tons of properties because they’re the
ones provided of course the loan so they want to make sure that they’re covered
so if they’re finding that you’re underwriting a deal to a massive 200 our
rent bumps and you’re expecting you’re going to be operating at 20% expenses or
$2,000 a unit per year for expenses they’re gonna throw up a red flag and
say well something’s off here there’s something that’s missing and based on
the data on many other properties we underwrite in this area everybody else
is coming within these ranges and that’s what they’re gonna put in there and
that’s the values they’re gonna give you back in your loan so when you are
underwriting make sure you’re doing your homework but again even if you feel
fully confident in what you’re doing there’s always ways that you can miss
things and these are big properties lots of undertaking so make sure to use your
partners and that can be the traditional sense just another partner you have on
your immediate team but don’t forget about the other partners around you who
are in your best interest your property manager your lenders your broker
networks there’s many people out there you can align with to be able to create
a successful Network to grow your portfolio quickly and most importantly
correctly okay this is Jason have a great Monday I know
you

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