Multifamily deal analyzer?

10 Replies

Hello BP,

I'm looking for a tool to use for analyzing multifamily deals. Any suggestions are appreciated... Also would love to partner with an experienced multifamily syndicator.  We still have a very strong market in TX

I've heard great things about Michael Blank's model but haven't used it myself.

I used to use RedIQ which automates part of the data entry process (as long as financials and RR are in a compatible format). I thought it was good, allowed you to get very granular, however I ended up preferring my model and process over than RedIQ and since it's not the cheapest option I ended my subscription.

Have you tried to build a very basic model in excel yourself?

Putting together a simple model doesn't require too much advanced excel knowledge to at least calculate cash flows. 

Where modeling can get a little more difficult is when you are calculating for different waterfalls. Calculating IRR is a function of watching a youtube video on how to format the formula and which cash flows to include.

The process of building a model yourself also is a good exercise in understanding what the mechanics of a deal are and allows you to customize your own process.

Once you understand the process then using a more advanced model makes a lot of sense. There are also freelance underwriters who can do the analysis for you and they are affordable. 

Michael Blank's SDA is solid. I would suggest that you either create one yourself or if you buy one, that you manipulate it to make it your own. The SDA is good, but it is for the masses, which means it may not be a perfect fit for you. 

I don't believe there is just any single tool to analyze any property. Just as each deal is unique, each property is also unique. You are better off developing your own system which will take into account the state of repair (or disrepair), renovations (and the cost of those renovations) that can justify higher rent, the regulatory environment, as well as neighborhood conditions. 

Thank you, guys!!! I really appreciate all of your responses. Since so many people tried and suggest @Michael Blanks, I will try it and let you know what I think about it. He also offers 60 days money back if unsatisfied.. @Spencr Gray, love your idea about building my own basic model, I may try it too. 

I started with the Syndicated Deal Analyzer but now mostly use MogulTool. MogulTool is really simple and also comprehensive.