LOOK FOR THIS MAJOR RED FLAG IN INVESTOR'S UNDERWRITING
Sunday, March 06
One of the biggest red flags is if the investor thinks they can raise the rent of all the units in year 1 (especially if the property is a mid-size or large-size property). This is impossible. The property manager cannot raise rents from day 1. The property manager needs time to adjust to the pro...
The importance of teamwork
Thursday, March 03
I am taking the Biggerpockets multifamily bootcamp and I am learning so much. There are four parts to any real estate business. Here are the positions of a real estate business: Hunter (acquisitions)- market expert and deal hunterThe money- private money-raiser and coordinates lenderThe brain- th...
LOOKING FOR THE RIGHT SPONSOR IS MORE > LOOKING FOR RIGHT DEAL
Thursday, February 24
If you are thinking about passively investing in a syndication deal, choosing the right sponsor is more important than the actual deal. The most obvious reason is you want to make sure you are not investing your hard-earned money with a criminal who will take your hard-earned money and run. Now l...
should you take a personal loan to invest in someone else's deal
Friday, February 18
I have heard several people ask if it is good to get a personal or business loan to invest in somebody’s syndication deal. Even if you are investing with a trustworthy syndicator, I will explain why taking a loan to invest in someone else’s deal. Let’s look at things from a macro level. For the l...
what to look for when analyzing operating expenses on T12
Tuesday, February 15
Some buyers are making deals work in today’s market because they are buying properties not reflecting the NOI accurately. If you buy C vintage properties, be careful if operating expenses are less than 45% NOI. Realistically speaking, properties built between 1960-2002 should be running at 50-55%...
how to use rent comps appropriately
Sunday, February 06
Getting rent comps is one of the most crucial and time-consuming parts of underwriting. The number one rule is to not believe the broker’s rent comp at face value. Remember, “trust but verify” everything. Remember, the broker’s main job is to sell you something. So, they will get you the highest ...