Underwriting Multifamily Properties w/ Jordan Hegemann

Paige Capital Group // Invest with me Follow on IG // @traejacobs_ Facebook // PCG Jordan Hegemann is a seasoned underwriting specialist in multifamily real estate, driven by her passion for maximizing investments. Her journey began with fixing and flipping houses, but it wasn't until she delved into multifamily that she found her true calling. Armed with a background in finance and a knack for meticulous analysis, Jordan excels at identifying lucrative deals and crafting achievable business plans. Her commitment to excellence extends beyond her professional achievements; she is dedicated to empowering women in the industry and inspiring future generations. Summary In this conversation, Trae Jacobs and Jordan Hegeamnn discuss the process of underwriting and evaluating real estate deals. They cover topics such as analyzing the market and property, common pitfalls in underwriting, and the investor perspective on underwriting. They also provide insights into best case scenario underwriting and the importance of remaining conservative in the analysis. In this conversation, Jordan Hageman discusses the process of underwriting multifamily properties. He emphasizes the importance of accounting for capital expenditures (CapEx) and projecting expenses and income over a five-year period. Jordan also highlights the criteria for determining whether a property deserves a full underwrite. He mentions the challenges investors are currently facing, such as increasing insurance costs and the high cost of money. Jordan shares his forecast for interest rates and rent growth nationwide, as well as the stability of certain markets. He concludes by discussing his goals for the future and how listeners can support him. Takeaways Understand the market and property performance before diving into underwriting. Be cautious of inflated numbers and unrealistic expectations in underwriting. Consider the impact of rent growth, expenses, and debt on the overall underwriting. Maintain a conservative approach in underwriting and focus on highest achieved rents. When underwriting multifamily properties, it is crucial to account for capital expenditures (CapEx) and project expenses and income over a five-year period. Determining whether a property deserves a full underwrite depends on whether it meets the investor's target metrics, typically within a range of 2-5%. Investors are currently facing challenges such as increasing insurance costs and the high cost of money, which impact underwriting decisions. Interest rates are expected to drop slightly in the future, but not as low as they were a few years ago. Rent growth is projected to stabilize at around 2.5-3.5% nationwide. Stable markets, such as Indianapolis, offer consistent returns and lower risk, making them attractive for investors. Jordan's goals for the future include closing four to six properties, ramping up his consulting business, and implementing better systems and processes.