All Forum Posts by: Ethan Wagner

@Sara Reeder I would say not only is it common to ask for a P&L and rent roll, but it is really required for you to size a deal accurately before putting in an offer.

@Jeremy Holleb feel free to DM me if you need help

@Steven Cobb direct capitalization and/or discounted cash flow

@George Yu Congratulations George! If you need any help underwriting, raise equity, or debt. Please don't hesitate to reach out to me. My firm is called Rothrock Real Estate Group!

@Sindy Zheng I know that this isn't a book, but adventures in CRE is an amazing website with an expansive library of educational material regarding underwriting and modeling.

Also if you have any specific questions I would be happy to reach out!

I've worked in the commercial real estate industry for a few years doing capital markets, acquisitions, and valuation advisory and I want to start my own firm doing debt and equity placement.

Does anyone have any advice on how to get started in this space? I could go work for the bigger players (CBRE, JLL, Walker Dunlop, NKF, etc.), but my family cannot relocate to a big city.

I know the business with regards to structuring the capital stack, how investors/developers look at deals, how lenders look at deals, and I can underwrite CRE investments. I just need to figure out how to get started and what licenses I need (if any) before I can have my agreement signed and start closing deals.

Any advice is welcome and thank you all for your time.

@Matt Teegarden so what you're missing is the fact that, based on the financials, this property had significant vacancy in the past year and also had collections issues.

You can't cap an unstabilized NOI. What you should do is Cap a stabilized pro forma NOI and then deduct the costs to get there to get to your current value based on the direct capitalization method.

I would go to the OM, use the broker pro forma, and then do your own research to determine the viability of their assumptions. Maybe dial back their assumptions slightly to be conservative.

Just FYI there is a ton of institutional capital chasing multifamily in Texas so be prepared to bid competitively.

Always do your own underwriting. Brokers are tasked at selling so their numbers are biased.

@Matt Teegarden

Just took a look at the OM. Your numbers are wrong.

@Matt Teegarden

Yep no problem. The expenses are so way too high. Where did you get these numbers?

@Jonathan Aldas

What questions do you have? Happy to answer them.