I'm looking for formulas to underwrite large multi family deals

[Zoltan Kalu]

Hey Everyone,

I'm getting into Commercial Real Estate and I'm not sure where to find formulas to underwrite deals. Can someone help me out with formulas that you guys use to underwrite large multi family deals?

Thank you 

[Jim Pellerin]

Quote from @Zoltan Kalu:

Hey Everyone,

I'm getting into Commercial Real Estate and I'm not sure where to find formulas to underwrite deals. Can someone help me out with formulas that you guys use to underwrite large multi family deals?

Thank you 

Not sure what you mean by formulas. Underwriting is an extensive evaluation to determine risk and return based on your goals. It should look at cap rates, relative cap rates, vacancy, capital expenditures, value add opportunities, rents relative to market rents, type of building, type of neighborhood, medium income in neighborhood, and lots more. Heres an article I found

 https://www.flagshipbanks.com/...