📈Did you see the video? (Follow Up)

I’ve received amazing feedback from last week’s deep dive into quickly screening multifamily acquisitions in 10 minutes or less. If you missed it, don’t worry—there’s still time to check it out!

In case you missed the email, here’s a quick summary of what we covered:

• Input Key Property Details

  • Enter total unit count, average rent, average square footage, and planned hold period (e.g., 5 years).

  • Set an exit cap rate to establish a baseline for initial analysis.

• Develop a Basic Pro Forma

  • Outline the business plan, including planned rent increases, renovation costs per unit, and total CAPEX.

  • Estimate major income and expenses, factoring in anticipated economic losses for initial renovations and long-term stabilized vacancy rates.

• Enter Debt Terms

  • Define loan assumptions, including loan-to-cost ratio, interest rate, amortization period, and any interest-only terms.

  • Ensure CAPEX financing is included in debt if applicable.

• Analyze Projected Returns

  • Review unlevered and levered returns, targeting metrics like IRR, equity multiple, and cash-on-cash return.

  • Adjust the purchase price if necessary to meet return thresholds.

• Evaluate Metrics

  • Calculate the stabilized yield on cost and compare it to the market cap rate. Ensure it has a favorable spread, indicating strong value creation potential.

  • Evaluate other metrics like DSCR, GPR, and breakeven occupancy rate.

Video

Want to see this strategy in action? Watch this 6-minute video where I walk you through the exact steps to quickly screen a multifamily deal.

What did you think of the video?

Was there a specific part that resonated with you? Hit reply and let me know—I’d love to hear your thoughts.

After receiving many requests, I’m launching a paid community designed to help investors close their first commercial multifamily property.

Not only will you become an underwriting master, I will work with you 1-on-1 to outline the steps you need to take to close your first deal and start your investing career. This group will be limited to 20 people.

No, it’s not free, to weed out tire kickers. But it will also be cheaper than any other program you will find.

If you’re serious about getting into multifamily, schedule a call with my partner and head of strategy. Use this link » Schedule your time here.

Have a great week!

Talk soon,  

Justin

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