Secrets of Analyzing Multi-Family Properties

In this module (39 of 46 in the Real Estate Investing Secrets course), you will learn:

• The differences between analyzing a multi-family property with commercial financing and a single-family home with more traditional financing

• Obviously, the numbers are larger when you’re analyzing multi-family property deals, but what about the nuance of the increases

• How to deal with the listing and getting info on analyzing these types of deals

• The difference between actual and pro-forma numbers

• Why you might not be able to see all the units prior to making your offer and how it typically works with larger multi-family properties

• Why and how to make adjustments to numbers provided to you

• Determining the value of the property (ARV) and understanding the difference between these multi-family properties and smaller properties

• Negotiating with multi-family sellers and their agents/brokers

• How is financing different for 5+ units compared to financing < 5 units

• What lenders typically look for when financing 5+ unit commercial loans

• Down payments on 5+ unit commercial loans

• Debt Service Coverage Ratios… how to calculate it and how it is used when analyzing multi-family properties

• How amortization/loan term changes with multi-family financing

• How interest rates differ from more traditional financing

• The ugly truth about pre-payment penalties with 5+ unit commercial financing

• Can lenders really insist on reviewing your financials every year when getting commercial financing

• How closing costs change when analyzing multi-family properties

• Analyzing properties where you are improving their economics… and how to represent that with rent ready costs

• Why you’re much less likely to have to use cumulative negative cash flow when analyzing multi-family properties… and it is NOT because the properties cash flow better

• Modeling monthly rents and monthly other income—especially if you’re improving rents—when analyzing multi-family properties

• Correctly analyzing vacancy rates for multi-family deal analysis

• Why you can’t just use the property taxes in the listing when analyzing these deals

• Why you should call your insurance agent instead of using the seller’s insurance costs during deal analysis

• Dealing with landlord-paid utilities on multi-family properties including modeling switching to billback for utilities

• What common expenses might you see when analyzing multi-family properties

• Dealing with maintenance and capital expenses during multi-family deal analysis

• A word on liquidity challenges with multi-family

• Multi-family pros and cons

• Plus, much, much more…

Secrets of Analyzing Multi-Family Properties

Here are the slides from the presentation for your convenience…