Rental Property Investor · Triangle Area, NC · Member since 2019 · 48 posts · 12 votes
Hi All,
New investor here. Currently reading Michael Blanks, "Financial Freedom w/ REI" book. Does anyone have experience, feedback, or opinions with using the "Syndicated Deal Analyzer " excel system? Thanks!
We use Michael's analyzer currently (along with other tools) and find it very useful. If you aren't an excel expert I wouldn't bother trying to make your own or scour the internet for an analyzer tool that may or may not meet your needs. What is your time worth to you? For me, if I wasted even half a day trying to find one rather than buying this one it just would not have made sense.
Rental Property Investor · Manama, Bahrain · Member since 2015 · 96 posts · 68 votes
7y
There are plenty of video reviews and Bigger Pockets comments on his website if you scroll to the bottom. I never used it and not affiliated with Michael Blank.
Specialist · Washington, DC · Member since 2019 · 177 posts · 150 votes
7y
@Ricky Rigsbee
Personally, I wouldn't pay for it. Its a standard excel model that can be found with a little googling. All this is, is a back of the envelope quick tool that gives you a very broad idea of whether or not an investment is actually worth looking further into. In absolutely no way would I ever depend on such a broad analysis to ultimately determine my decision.
This tool is basically designed to help you decide whether or not to submit your LOI for further diligence. If your LOI is accepted and you are give your window, you would need to use a way more comprehensive analysis tool. As I said before you can get a more advanced excel model for free elsewhere. I have one I will send you if you would like. But again, it should only be used as a snap shot tool.
Rental Property Investor · Montville NJ · Member since 2019 · 26 posts · 8 votes
7y
@Chase McArthur do you mind sending me a copy of your analyzer as well? I have the same dilemma and can't find a rock solid tool without spending 100's of hours building mine...much appreciated.
Rental Property Investor · Milwaukee, WI · Member since 2017 · 77 posts · 86 votes
7y
@Ricky R. I agree with @Chase McArthur, there are a ton of tools out there and many of them are free. I'm sure the one Chase will send you is thorough, detailed and will do the trick.
I purchased @Michael Blank's Syndicated Deal Analyzer however, and I do enjoy using the tool. I completely understand all the financial calculations and models in the system and yes, it would have been fairly easy to build one myself, but very time consuming.
If the formulas in any of deal analyzer you use do not fit your underwriting needs, you can always add to them, that way you're not starting from scratch.
Rental Property Investor · Triangle Area, NC · Member since 2019 · 48 posts · 12 votes
7y
Hi all,
I just wanted to express my gratitude for all you guys taking the time out of your day to answer my questions. I have a lot sinking in right now so im very appreciative for the help you guys have offered. Please let me know if theres anything I can do for you!
We use Michael's analyzer currently (along with other tools) and find it very useful. If you aren't an excel expert I wouldn't bother trying to make your own or scour the internet for an analyzer tool that may or may not meet your needs. What is your time worth to you? For me, if I wasted even half a day trying to find one rather than buying this one it just would not have made sense.
Rental Property Investor · Philadelphia, PA · Member since 2016 · 24 posts · 10 votes
7y
It's *a* tool. Not just *the* tool. Use it in conjunction with all of your other tools and you'll find that it has its place and can be useful. As far as its value, I'd agree with @Ian McDonald that it is something you could build yourself with the right amount of excel expertise and plenty of time. But how do you value your time? Time equals money, etc etc.
I got the analyzer and it does a good job assisting you with your underwriting and the different scenarios you can generate for comparison. You can build the tool yourself but it will take time.
Investor · Charlotte, NC · Member since 2017 · 791 posts · 479 votes
7y
@Ricky R. congrats on joining BP! You will find many helpful investors on here. I do not sell my model but I have a friend in the business who offers a much better model than Michael Blanks in my opinion. His name is David Toupin. Go on his website at obsidian capital co and you will find it. Once advanced at underwriting, you will start to build your own or customize one your using for your needs.
Real Estate Agent · Atlanta, GA · Member since 2017 · 86 posts · 71 votes
7y
For those that do not feel comfortable enough with excel to build out a tool on your own, I would suggest starting by taking excel courses focused on dynamic real estate modeling. I have taken multiple courses on Udemy.com revolving around this topic. Look up the courses taught by Justin Kivel, specifically the Pro forma modeling course and the real estate financial modeling boot camp. Between the resources that you build on these courses and MIchael Blank's tool, I am more than capable of underwriting deals very efficiently.
Rental Property Investor · Johnson City TN · Member since 2016 · 386 posts · 271 votes
7y
@Ricky R. - I use the Michael Blank SDA and think it's extensive enough for modeling a purchase with or without syndication. I'm a little surprised that @Chase McArthur thinks it's only suitable "to help you decide whether or not to submit your LOI for further diligence". There is a quick calculation tab for a ten minute analysis but it is capable of far more than that in my opinion. I've also taken some of Justin Kivel's courses on Udemy, they're definitely worth a look.
Rental Property Investor · Phoenix/Lima, Arizona/OH · Member since 2012 · 4k+ posts · 4k+ votes
7y
Here's the problem - in order to be fully dialed in the model needs to be unstable. However, you can't sell something unstable, with circular references, requiring human override, etc.
But, if you stabilized it, the model loses efficiency.
For those that do not feel comfortable enough with excel to build out a tool on your own, I would suggest starting by taking excel courses focused on dynamic real estate modeling. I have taken multiple courses on Udemy.com revolving around this topic. Look up the courses taught by Justin Kivel, specifically the Pro forma modeling course and the real estate financial modeling boot camp. Between the resources that you build on these courses and MIchael Blank's tool, I am more than capable of underwriting deals very efficiently.
Great suggestion Anthony. I just checked out Justin's Udemy page and purchased a few course. Are there any other course you recommend? I'd appreciate any advice you may have!
Rental Property Investor · Dallas, TX · Member since 2016 · 261 posts · 170 votes
7y
@Greg Scully agreed. Blanks model is very comprehensive. I use my own model that I have built out over the years but I have done deals with rudimentary spreadsheets.
They are tools to save you time. Everything can be done with a calculator and a piece of paper if need be.
Investor · Front Royal, VA · Member since 2013 · 586 posts · 418 votes
7y
@Ricky R. The problem with all calculators and spreadsheets is that it should never be used as a calculator. Multifamily is incredibly complex and if you don't understand the metrics or calculations behind it, you're going to get burned. if you're just plugging numbers in until it "goes green", you are either going to miss out on deals or buy something you shouldn't. You want the ability to create your own spreadsheet even if you never do.
Rental Property Investor · Tampa, FL · Member since 2015 · 1k+ posts · 969 votes
7y
Hi Ricky,
I always recommend that people create their own model. It isn't easy, but you'll learn a lot about underwriting from the process and know the ins and outs of the entire model, which makes using it, troubleshooting it, and adding to it much easier.
The Woodlands, TX · Member since 2017 · 45 posts · 31 votes
7y
@Ricky R., along with many others I have also used MB's tool. I've also used several others, but found that they were always missing something. I eventually created my own, but as @Luke Miller says, Multifamily is very complex. Most importantly is the information that is fed into the tool (along, of course with accurate calculations).
I analyzed so many deals that myself or my partners were not inclined to pursue, I felt the time/effort shouldn't go to waste. Just because the deal may not fit our criteria, there are many other syndicators that will.
I finally decided to make that data available to other sponsors that easily makes up for the time/effort that goes into it. It gives you a very quick head start on live deals. The full 5 year proforma is free to give you a good look at what to expect on the deal. Obviously, the at least 42 input variables can be adjusted to your own risk tolerance, but this is far easier/quicker than to re-create the entire input.
Rental Property Investor · San Antonio, TX · Member since 2016 · 87 posts · 31 votes
7y
@Ricky R. welcome and congrats on getting started on MF.
MB's calculator is a great tool, and also a very dangerous one if you dont know how to use it or are not familiar with how to use excel at a medium+ level. The calculator is a LIVE excel with multiple tabs and all of them are interconnected, you may mess up a formula and you will see awesome returns inaccurately. Once you master it, its an awesome tool.
Like the other members say, you can easily find it online, however, i strongly recommend you watch the videos (that come with the calculator when you buy it for a lil over $100) so you can learn how to use it properly. Once you buy it, practice... A LOT.