How To Underwrite Multifamily Real Estate Investments

Learn Multifamily Real Estate Investment Underwriting in a Snap!

What you’ll learn
Learn how to perform a quick property analysis to determine whether you should look further
Build out monthly cash flow model and roll up into annual cash flows
Understand IRR and its limitations
Calculate mortgage payments, payoff amounts, interest only payments, and more
Understand how partnership waterfalls are constructed and differentiate between project and partnership-level returns
Requirements
None
Description
Welcome to the Multifamily Real Estate Underwriting mastery course. If you are new to real estate investment underwriting and would like to develop working knowledge and skills so that you can quickly begin underwriting properties, then you are in the right place. This course is going to focus on steps of the underwriting process beginning with receiving an offering memorandum, T-12, and rent foll all the way up to the point of deciding whether to send an LOI to a seller. While I will provide you with some useful Excel formulas, the focus of this course is going to be on understanding of both conceptual and applied underwriting for multifamily versus “building Excel models from scratch.” For those of you more adept with using Microsoft Excel, you can deconstruct the completed model in the final lesson and create your own from scratch using concepts taught in this course.You will find the format of this course consists of both video and written text lectures that have many downloadable files you can use for practice.This course is divided into the following lessons:· Lesson 1: Overview and Valuation Basics· Lesson 2: Deal Underwriting: Quick Analysis· Lesson 3: DCF (Income Approach)· Lesson 4: Real Estate Debt· Lesson 5: Partnership Cash Flows

Overview

Section 1: Introduction and Valuation Basics

Lecture 1 Meet the Instructor

Lecture 2 How to Use this Course

Lecture 3 What is Underwriting – Video

Lecture 4 What is Underwriting

Lecture 5 Three Ways to Value an Asset

Section 2: Deal Underwriting – Quick Analysis

Lecture 6 What is the quick analysis?

Lecture 7 The Offering Memorandum

Lecture 8 Offering Memorandum (OM) Walk through Video

Lecture 9 T-12 & Rent Roll

Lecture 10 Quick Analysis Video

Section 3: DCF – Income Approach

Lecture 11 The Time Value of Money

Lecture 12 The Discount Rate

Lecture 13 Discount Rate Video

Lecture 14 The Present Value of Cash Flows

Lecture 15 Net Present Value

Lecture 16 Internal Rate of Return (IRR)

Lecture 17 10-Year CF Forecast Video 1

Lecture 18 10-Year CF Forecast Video 2

Lecture 19 Investment Returns

Lecture 20 Real VS Nominal Returns

Lecture 21 Time Value of Money Video

Section 4: Real Estate Debt

Lecture 22 What is the capital stack?

Lecture 23 Amortization and Interest Only Loans

Lecture 24 Loan Sizing

Lecture 25 Levered Cash Flows

Section 5: Equity Waterfalls

Lecture 26 What is a partnership waterfall?

Lecture 27 General Partnership Compensation

Lecture 28 Partnership Cash Flows Video

Beginning real estate analysts, underwriters, or investors.