If you’re interested in completing an apartment deal, it’s critical that you understand the ins and outs of completing the real estate underwriting process. This is true even if you have a team member who specializes in real estate investment underwriting because you’ll still want to be familiar with the process in case your investors have questions.

In this Syndication School series, we will discuss the eight-step process of underwriting a value-add apartment deal.

Part 1: Underwriting Step 1 to 3

What you will learn:

  • What you need to underwrite an apartment deal
  • Summary of the eight-step underwriting process
  • Step one to three: Read the OM, input the rent roll, input the T-12

Free Resource: 

Click here to listen to Part 1.

Part 2: Ways to Add Value to Apartment Communities

What you will learn:

  • A brief introduction in step four of the underwriting process: setting assumptions
  • 27 ways to add value to apartment communities

Click here to listen to Part 2.

Part 3: Underwriting Step 4a

What you will learn:

  • Setting underwriting assumption to determine the amount of money you need to raise

Click here to listen to Part 3.

Part 4: Underwriting Step 4b

What you will learn:

  • How to set the remaining underwriting assumptions: growth assumptions, project assumptions, stabilized income and expense assumptions, and debt assumptions

Click here to listen to Part 4.

Part 5: Underwriting Step 5

What you will learn:

  • How to determine an offer price

Click here to listen to Part 5.

Part 6: Underwriting Step 6

What you will learn:

  • How to perform an online rental comparable analysis to determine/confirm stabilized rental premiums

Free Resource: 

Click here to listen to Part 6.

Part 7: Underwriting Step 7

What you will learn:

  • How to confirm the rent premiums calculated by the online rental comparable analysis either via phone call or in-person visit

Click here to listen to Part 7.

Part 8: Underwriting Step 8

What you will learn:

  • How to complete the underwriting process by visiting the subject property and market in-person

Click here to listen to Part 8.

A practical understanding of real estate investment underwriting can help you to complete winning deals time and time again. Fortunately, our real estate investing classes will teach you everything you need to know. For even more information about the real estate underwriting process, consider checking out the Best Ever Apartment Syndication Book.

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Joe Fairless