Fri, 25 May 2018
No one wants to lose their shirt—or anything else for that matter—in multifamily investing. But it’s easy for inexperienced syndicators develop an emotional bias and conflate the numbers in order to make a deal look good to potential investors. And passive investors new to the game typically focus on returns, when their first question ought to be about the risks involved. Conservative underwriting is the key to risk management for syndicators and investors alike… But how do you ensure that the numbers are reasonable? What questions should investors be asking? And how can you tell when a syndicator is too aggressive?
Omar Khan is a Chartered Financial Analyst with Boardwalk Wealth, a private equity firm based in Dallas, Texas, that connects international investors with multifamily opportunities in the southern US. Omar is responsible for raising capital, strategic planning, the development of underwriting models, and investor relations. He has 10-plus years of global investment experience, and Omar has participated in capital financing and M&A transactions valued at $3.7B.
Omar joins me to explain how to identify aggressive underwriting and ensure the accuracy of the numbers used in a particular model. We cover conservative guidelines for reserves and loan terms as well as the importance of planning for worst-case scenarios. Listen in for Omar’s insight around what to look for in a syndicator, how to leverage a sensitivity analysis, and the exit strategy questions an investor should ask—and a syndicator should be prepared to answer!
Omar’s background in finance
How to identify aggressive underwriting numbers
How to ensure accuracy of numbers used in model
What Omar looks for in the cap rate at exit
The internal systems questions passive investors should be asking
The qualities Omar is looking for in a syndicator
Omar’s insight around communicating with investors
Omar’s advice around conservative loan terms
Omar’s approach to bridge loans
The most conservative underwriting guidelines for reserves
The importance of planning for worst-case scenarios
How the passive investor can leverage a sensitivity analysis
Omar’s advice on the exit strategy questions to ask syndicators
Connect with Omar
Call (214) 727-8643
Free eBook: The Secret to Raising Money to Buy Your First Apartment Building
Direct download: MB_110-_Conservative_Underwriting__Risk-Management_in_Multifamily_Investing__With_Omar_Khan.mp3
Category:Commercial Real Estate -- posted at: 4:10pm EDT