EPISODE · Jul 16, 2024 · 13 MIN
#246: The 3 Underwriting Assumptions Multifamily Investors CAN'T Get Wrong
from The Multifamily Wealth Podcast · host Axel Ragnarsson
Are you making these three critical mistakes in multifamily underwriting? Find out how small tweaks in assumptions can turn a bad deal into a good one on paper. In this episode, we dive into the big three assumptions that can make or break a multifamily investment.We explore the impact of rent growth, exit cap rates, and projected rents on projected returns in multifamily underwriting. Discover how slight adjustments in these assumptions can significantly alter the perceived viability of a deal. Learn why getting these three assumptions right is crucial for both LPs and sponsors in the multifamily space.Key points covered in this episode: - The compounding effect of rent growth over the hold period - Manipulating exit cap rates to influence terminal property value - The critical role of projected rents in determining NOI and overall returnsStruggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.Are you looking to invest in real estate, but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners provides investment opportunities to passive investors looking for the returns, stability, and tax benefits multifamily real estate offers, but without the work - join our investor club to be notified of future investment opportunities.Connect with Axel:Follow him on InstagramConnect with him on LinkedInSubscribe to our YouTube channelLearn more about Aligned Real Estate Partners
What this episode covers
Are you making these three critical mistakes in multifamily underwriting? Find out how small tweaks in assumptions can turn a bad deal into a good one on paper. In this episode, we dive into the big three assumptions that can make or break a multifamily investment. We explore the impact of rent growth, exit cap rates, and projected rents on projected returns in multifamily underwriting. Discover how slight adjustments in these assumptions can significantly alter the perceived viability of a ...
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#246: The 3 Underwriting Assumptions Multifamily Investors CAN'T Get Wrong
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