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
Fri, 18 May 2018
‘It is in your moments of decision that your destiny is shaped.’
In my experience, once you truly decide to pursue multifamily investing, it will take 3 to 18 months to do your first deal. In 3 to 5 years, you will have replaced your income and quit your job. And the entire process is set in motion via the Law of the First Deal.
Today, I’m unpacking the powerful Law of the First Deal. I start with its basic principles, offering case studies of podcast guests who were able to replace their income within 3 years and quit their jobs via multifamily investing. I explain why the Law of the First Deal works, describing how investors become deal (and money!) magnets soon after their first closing.
Finally, I walk you through the steps necessary to develop a concrete plan, calculating how long it will take to quit your job—based on your individual Rat Race Number. Listen in for insight on how to leverage the Law of the First Deal to replace your income with multifamily!
The principles of the Law of the First Deal
Case studies of the Law of the First Deal
Why the Law of the First Deal works
How long it takes to quit your job
The typical Law of the First Deal timeline
The value of establishing a concrete plan
Direct download: MB_109-_The_Law_of_the__First_Deal_-_with_Michael_Blank.mp3
Category:Commercial Real Estate -- posted at: 2:02pm EDT
Fri, 11 May 2018
Would you be willing to make 4,500 agonizing phone calls to land your first property? How about going to the trouble of analyzing 100 deals to find one good one? It goes without saying that we have unparalleled opportunities here in the US, but success is unlikely to fall into your lap. So, if you are looking to become a successful multifamily investor, you have to START: Learn to analyze deals properly and get one done.
Andrew Cushman is the principal of Vantage Point Acquisitions, a multifamily investment firm out of Southern California. Andrew has a BS in Chemical Engineering from Texas A&M University, and he worked for a Cargill Foods for seven years before leaving the corporate world for real estate investment. He completed 24 profitable single family flips before making the transition to apartment building acquisitions in 2010. Since then, Andrew has successfully syndicated 1,800 units that continue to provide investors with strong returns.
Today, Andrew joins me to share his story, explaining how an article in the Wall Street Journal inspired his real estate career and why he made the transition from pre-foreclosure flips to multifamily. He walks us through his first deal, a 92-unit property in Macon, Georgia, discussing his mistakes around failing to vet investors and underestimating renovation costs. Andrew offers advice for aspiring investors on beginning with the end in mind, building a network of investors, and partnering for instant legitimacy. Listen in for Andrew’s insight into the benefits of B properties and learn why finding a good deal in the current climate is challenging—but not impossible!
How Andrew got into real estate
Andrew’s shift to multifamily
Andrew’s first multifamily deal
How Andrew financed his first deal
What Andrew learned from his first deal
Andrew’s advice around doing your first deal
Andrew’s take on the challenge of finding a great deal
Andrew’s insight for aspiring investors who lack capital
The value in partnering
Andrew’s advice to his 22-year-old self
Andrew’s perfect day
What Andrew is looking forward to
Connect with Andrew
Direct download: MB_108-_Analyzing_100_Multifamily_Deals_to_Find_the_ONE__With_Andrew_Cushman.mp3
Category:Commercial Real Estate -- posted at: 5:07pm EDT
Thu, 3 May 2018
At the heart of every successful entrepreneur is a deep sense of spirituality. There is strength in developing a relationship with the higher power, and you must get your ‘being’ right before you can do something truly meaningful.
I recently saw Robert Kiyosaki speak on The Real Estate Guys cruise, and his talk reminded me of the connection between my success as an entrepreneur and my faith. Today, I’m sharing the three spiritual lessons that changed my life and brought me to the work I do now, teaching others to raise money and achieve financial freedom through apartment building investing.
I start by sharing my early success with the software startup webMETHODS, explaining how that experience created the illusion that I was in control of my own destiny. Then I describe the challenges I have faced as an entrepreneur and the three lessons I learned around giving up control, finding peace regardless of the circumstances, and shifting to a mindset of giving. Listen in for insight on the relationship between success and spirituality and learn to step out in faith—and realize an incredibly fulfilling life!
The concept of Be Do Have
My early success in tech
Spiritual Lesson #1: You are not in control
Spiritual Lesson #2: Find peace regardless of the circumstances
Spiritual Lesson #3: Shift to a mindset of giving
The relationship between success and spirituality
The Untethered Soul: The Journey Beyond Yourself by Michael A. Singer
Direct download: MB_107_-_The_3_Spiritual_Lessons_That_Changed_My_Life_-_With_Michael_Blank.mp3
Category:Commercial Real Estate -- posted at: 4:18pm EDT