Stop Spending Hours Analyzing your Commercial Real Estate Deals
You’re looking for your first (or next) apartment building but you’re not sure how to properly analyze the deal. Or you do, but it’s taking you too long to answer these critical questions:
- What is the MOST I can pay for this deal, and why? (In 10 Minutes or Less)
- What are my projected profits (and for my investors)?
- How should I structure the deal with my investors?
- What’s the most profitable exit strategy?
You know that answering these questions will take you hours — but you can’t afford to spend several hours analyzing every deal you get. The more deals you can analyze quickly, the more likely you’ll find the deal that will work for you.
Introducing The Free Video Course
“How to Analyze Apartment Building Deals”
Let me teach you a better way to analyze deals. In this FREE 8-Part Video Course I teach you everything you need to know about how to analyze apartment building deals, from the first time you get a deal from your broker all the way through due diligence, closing and final exit.
I’ll show you how to analyze an apartment building deal using a real-live case study, a 54-unit with considerable vacancy and upside. I’ll take you from the initial 10-minute analysis, estimating investor returns, and how much to pay yourself to estimating closing costs and the most profitable exit strategy. If you’ve read my free eBook “The Secret To Raising Money to Buy Your First Apartment Building” you already know about the “Sample Deal Package” and we’ll cover how to do that in this course as well.
Here’s what you will learn in this 8-part video course:
Module # 1 – Introducing Key Financial Concepts
In this section I’ll cover key financial concepts like cap rate, cash-on-cash return, average annual return, debt coverage ratio and other indicators that are critical to understand if you’re going to analyze deals. To learn these concepts, we’ll create a spreadsheet from scratch to begin analyzing our 54-unit apartment building deal.
BONUS: At the end of the course, I’ll email you the actual spreadsheet to keep.
Module # 2 – The 10-Minute Analysis: how to answer the question “what is the MOST I can pay for this apartment building and why?”
In this video, I’ll show you how to answer the question “what is the MOST I can pay for this apartment building deal?” We’ll first use our custom-built spreadsheet from Module # 1 and then use the Syndicated Deal Analyzer to incorporate some more advanced (but important!) concepts.
Regardless of what approach you use, you don’t want to spend more than 10 minutes in your initial analysis because
- As you’re looking for other apartment buildings to buy, you can’t afford to spend hours analyzing each deal;
- You need to get back to the broker or seller quickly with something like “this deal doesn’t quite work for me, and here’s why”; and
- You want to get the negotiation process as quickly as possible and with the least amount of effort.
The 10-Minute Analysis satisfies all 3 of these requirements.
Module # 3 – Understanding Investor Returns (And How to Structure the Deal)
In this video we’ll talk about what kind of returns investors look for and different ways to structure the deal. We’ll look at the effect of the investor returns on our deal analysis. Quickly being able to incorporate your investors into the analysis is key when buying apartment buildings with private investors.
Module # 4 – How Much to Compensate Yourself as the Syndicator
Learn how you can pay yourself when you’re syndicating an apartment building deal. See the effect of paying yourself at different points of the transaction in the financial model.
Module # 5 – Fine Tuning the P&L Projections (A Necessity for Value-Add Deals!)
Learn how to fine tune the projections with your particular business plan. Perhaps the vacancies and expenses are high, or rents are below market. If you could raise rents by 20% and lower expenses by 15% over the next 3 years, what impact would that have on your projections and your investors’ returns? Being able to
Module # 6 – Estimating Acquisition and Closing Costs
Due diligence expenses and closing costs are often over-looked by real estate investors, and estimating them quickly and accurately are key for investing in apartment buildings. In this module we use rules of thumb to estimate closing and due diligence costs. As you progress through due diligence, you’re able to override some of these values so that your estimates become more and more accurate.
Module # 7 – Determining the Most Profitable Exit Strategy
What produces the best return? A sale in Year 4 or 7? What if you refinance after the third year and hold for the next 7 years? I’ll show you how to model different scenarios so that you can determine which one produces the highest returns for you and your investors.
Module # 8 – Reviewing the Deal and Creating the Deal Package
In this video, we put it all together! We’ll review the deal as we’ve analyzed it so far, including what we’re paying ourselves and what our investors’ projected returns are. When we’re all done, we’ll use the Syndicated Deal Analyzer to produce a Deal Package we can give to our investors.
Enter your first name and email address below and I’ll send you the 8-part video course via email spaced out over the next 3 weeks. Remember, it’s FREE and you can always unsubscribe!