Summary

Our guest is the author of the fantastic real estate investing book “The Definitive Guide to Underwriting MultiFamily Acquisitions” and we take a deep dive into the art of underwriting!

Robert oversees acquisitions and capital markets for Lone Star Capital and has acquired over $100M of multifamily real estate. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions.

 He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.

If you’re someone who wants to learn more about underwriting multifamily deals then this episode is for you. We dive into how to get started, vetting deals and making sure you’ve got the knowledge to succeed. Join our community and improve your investing knowledge completely free.

KEY TAKEAWAYS

  1. To get started you should research and become familiar with income statements and rent rolls.
  2. Take the above information and plug it into a model that will provide you with vital financial data.
  3. Underwriting is the financial aspect of evaluating an opportunity. It will also allow you to determine your return hurdles and risks.
  4. A key contributor to risk is debt. The more debt, the more risk, and we also want to look at the maturity of the debt. For example bridge loans are more risky vs permanent financing.
  5. Look at business plans and ask: How much are we changing the revenue? We can demand a higher return for more potential risk.
  6. The number one way people lose out in real estate is because they can’t afford to cover the debt service.
  7. The main assumptions that you want to get right are the pro forma rents, rent comps, rent growth and exit cap rate.

BOOKS

Start With Why – Simon Sinek
https://amzn.to/3bl2IdF

LINKS

https://www.linkedin.com/in/rob-beardsley/

https://www.instagram.com/rob_beardsley

https://www.facebook.com/RobBeardsleyLSC

https://lonestarcapgroup.com/

FEATURED EPISODES

Learn from the smartest minds in business & investing.

Rod-Khleif

Rod Khleif

Director at The Lifetime CashFlow Academy, Best Selling Author & High Performance Coach
Kathy Fettke

Kathy Fettke

Co-CEO of Real Wealth Network, Host of the Real Wealth Show & author of Retire Rich with Rentals
chris-voss

Chris Voss

World's #1 Negotiation Coach, Bestselling Author "Never Split The Difference"
Brandon-Turner

Brandon Turner

Cohost of BiggerPockets Podcast, Author and Managing Member of Open Door Capital LLC
david-allen

David Allen

Leading authority in organizational and personal productivity, Author of Getting Things Done
Joe-Fairless

Joe Fairless

Host of Best Real Estate Investing Advice Ever show, Co-Founder of Ashcroft Capital

About The Show

What separates those who succeed from failures? Join thousands of listeners who learn the mindset of real estate investing and how to create multiple income streams. From busy professionals interested in passive investing or the real estate entrepreneurs who are primed to scale all come together to learn the mindset of creating financial and time freedom.

The Investor Mindset is a mix of interviews, and solo shows from Steven you’re not going to want to miss. Hit subscribe, and get ready to change your life.

YOUR HOST:

Steven Pesavento

The Investor Mindset Podcast & President VonFinch Capital

Steven Pesavento has always been obsessed with understanding how we can think better, how we can be better and how we can do better. He is an active real estate investor who curates Commercial Real Estate Investments for clients.

The Top 5 Lessons Learned From High Performing Real Estate Investors

I’ve interviewed almost 100 guests on The Investor Mindset Podcast. They all give their best advice. But what’s THE best advice, and what does it mean for us?