All Forum Posts by: Castenzio Venegas

Hey Melissa!

I’m in Brooklyn; don’t hesitate to reach out. My contact info is in my bio. 

Looking forward to connect.

-Castenzio

Hey! For those who own or operate CRE MF's and performed a Cost Segregation study on their properties...

I’m aware that by getting a cost segregation study done there's potential to save on insurance premium costs (and property tax appeals) since the study can recalculate the replacement costs for the insurance carrier. For those who have done this before and received savings on their insurance, please advise. How were you able to work with your insurance broker and, in turn, lower the current premium? Thanks for the help in advance! 

-Castenzio 

I appreciate Joe Fairless’s book! The layout is strong and he provides good action steps to take as you launch your business. I highly recommend. 

T-12 is the “Trailing 12” or the last 12 months of the properties profit and loss statement. It captures the specific line items that go into underwriting and analyzing a commercial property (you’ll also hear T-24 and T-3; same concept). “RR” is the “Rent Roll” or the list of the units and their specific rents aligned to the type of unit, lease term(s), and more depending on the property manager/owner. RR provides a snapshot of the in-place gross income of the subject property. 

Hi Jessica!

Your families decision to move in this direction is commendable! I agree with @Joseph Cacciapaglia -- finding out what you and your husband can and want to do in terms of the role you'll be playing with REI is key. It sounds like you have a good start with the type of real estate investing (commercial multifamily's in markets in and/or out of state). Also, I'm always willing to exchange contact information and/or hop on a call to serve as a sounding board!

Wishing you all the best! 

Castenzio 

@James Luctamar, I would love to connect! I'm in Brooklyn and I focus on CRE MF investing as well. Looking forward to it.

Hey Victor! I agree with Greg—there are many different variations that exist with slightly differing formulas, modeling, and assumptions. They also heavily depend on the type of MF investing/underwriting. Are you referring to residential MF or commercial MF? If it’s residential, you could use the BP tools or as Jeff referenced, DealCheck (free); however if you’re inquiring about the commercial space then the level of underwriting should be something geared towards that. My suggestions: 

1) Join a mentorship program 

2) Search on Udemy for a course on CRE MF underwriting — they can work with you on building out a spreadsheet and is very cost effective (and you can learn the foundational pieces of the modeling).

3) I like Hayden Crabtree’s underwriting program—and, it’s very reasonably priced! 

Send me a message if you want to discuss more. 

Enjoy! 

Hello @Nikki Closser! 

I wish you the best on finding and analyzing CRE MF's! It's my favorite types of underwriting.

I have two options for you to consider: 

1) I use a great industry standard, professional modeling spreadsheet. I've built in the value-add component(s) with construction and it produces with great efficiency. I always come back to this one as one my favorites to use. 

2) In addition to that, I always use (and recommend) MyPropertyStats.com. It's a great platform built by Hayden Crabtree (REI) who basically started with the same dilemma and question you posted about. It's geared for CRE MF's but can work for just about any CRE investment properties. Last time I checked it was priced very well!

Feel free to connect with me directly if you're interested in the spreadsheet I referred to. 

Best wishes on analyzing your deals! 

-Castenzio 

 Hey Bijith Rao! 

You're not alone! While I'm not in SF rentals, my question has been similar regarding jumping deeper into the multifamily space (apartments on the commercial side).I also believe success can be replicated especially when using the right resources, the right people, and applying the work (action-biased). My first deal was in the commercial space (a 6-plex though, so a smaller deal), but I'm looking forward to going larger within the apartment space. I've developed some good underwriting, specific to MF, and I am constantly learning but like you I want to partner with someone as well and operate as a team to shorten the learning curve. 

Let me know if you're interested in connecting! 

Thanks,
Castenzio