Multifamily Education Needed

15 Replies

Please recommend books that teach multifamily (5+ Units) investing with actual examples.

My problem with multifamily investing is estimating potential costs.

Thanks in anticipation.

@Laurence Obi

Besides books, there are several great podcasts out there on the subject which was one of the best ways I found (and still am!) learning that space. Given the current events now, there's also a lot of online webinars and courses going on. DM me for recommendations on both those fronts. 

Best of luck!

Laurence,

I've always been a fan of Michael Blank.  https://www.amazon.com/Financi...  you can read for free if you have Kindle Unlimited.

He also has the syndicated deal analyzer tool (for purchase) and a forum and a bunch of videos to help you learn the process.

I'd also say best way to estimate expenses is to look at a whole lot of deals.  Get your hands on as many T12s as possible and get familiar with what's going on in the market you're investing in.  Utilities vary wildly from state to state as to property taxes and insurance.  Looking over many actual expenses from actual owners will help you better than any book you can get...

@Ryan Daigle - thanks for the list of podcasts...  there were one or two that I hadn't heard of.

@Laurence Obi Good recommendations thus far. 

Based on your post, I've bolded the titles below that should be most applicable to assisting with estimating costs.

For 5+ Multifamily/Commercial in General:

  • Crushing It in Apartments and Commercial Real Estate by Brian Murray - Great Source of Info
  • The How to Add Value Handbook for Commercial Real Estate by Brian Hennessy
  • The Due Diligence Handbook for Commercial Real Estate by Brian Hennessy

For Large Multifamily and Apartment Syndication the following are recommended :

  • Wheelbarrow Profits by Jake and Gino - Simple, Easy to Read as a good intro.
  • Best Ever Real Estate Syndication Book by Joe Fairless - Detailed, Lot of Information, Recommended
  • It's a Whole New Business by Gene Trowbridge - Detailed, Thorough

Additionally, the "Book on Estimating Rehab Costs" by J. Scott is good for a per unit basis on what repairs/renovations will cost. These still apply to multifamily 5+.

Thanks so much Chris.

Invaluable info. Will check them all out.

And thanks Brian. i'll definitely be checking out Michael Blank.

You all are awesome. And these podcasts and books are going on my list of must haves.

@Laurence Obi , in addition to the books and podcasts recommended by the other BPers, have you gotten well versed with using the BP buy-and-hold-calculator/new. probably the best tool for you to search and analyze properties and get good at estimating costs. If you're curious in estimating ARV, then I'd recommend J Scott's guide (also available on the BP site) Good luck!

@Laurence Obi

A lot of great books and podcasts have already been mentioned. I found a ton of value in using Rod Khleif’s educational material (most of his books and material are free).

Also, it sounds like you are specifically looking to improve your ability to normalize expenses when underwriting multifamily properties. Your best resource for this will be a local property manager. Make sure the PM deals with the type of asset you are looking at, similar size, similar class, etc. Build a relationship with the PM and bring them on a walk through of the property with you. They should be an expert on where the income and expenses are and where they could be. 

Last, David Toupin has a great deal analyzer specific to multifamily and multifamily syndication. In his deal Analyzer he offers a cheat sheet with an average cost per unit per year of each major expense line item. I’ve found this info really helpful to use as a placeholder in my underwriting until I find more accurate info from a PM or through other means. 

Please let me know if there are any other ways I can help you succeed. 

Originally posted by @Loren Jacobs :

@Laurence Obi

A lot of great books and podcasts have already been mentioned. I found a ton of value in using Rod Khleif’s educational material (most of his books and material are free).

Also, it sounds like you are specifically looking to improve your ability to normalize expenses when underwriting multifamily properties. Your best resource for this will be a local property manager. Make sure the PM deals with the type of asset you are looking at, similar size, similar class, etc. Build a relationship with the PM and bring them on a walk through of the property with you. They should be an expert on where the income and expenses are and where they could be. 

Last, David Toupin has a great deal analyzer specific to multifamily and multifamily syndication. In his deal Analyzer he offers a cheat sheet with an average cost per unit per year of each major expense line item. I’ve found this info really helpful to use as a placeholder in my underwriting until I find more accurate info from a PM or through other means. 

Please let me know if there are any other ways I can help you succeed. 

 Thank you @Loren Jacobs.

very useful info. Will defo check these out. 

I can't recommend any books unfortunately but I've gained a ton of value from watching Matt McKeever on Youtube.  Especially Kasey Wong's videos. 

Hi @Laurence Obi - Peter Harris - the original author of Commercial Real Estate Investing for Dummies, which has recently been updated with Peter Conti - has lots of free content on his website CommercialPropertyAdvisors.com and on YouTube. Excellent lessons on estimating potential costs are included.