Multifamily Syndicators I have a question for you!

[Nicklaus McCain]

Hey guys! 👋🏼 Quick question,

I am practicing my underwriting by getting T-12’s and Rent Rolls from LoopNet. I have a great analyzer and understand the whole process of underwriting value add opportunities.

Although, I am struggling with knowing where I can best increase Year 1 projections.

1. Rents increased to market rents

2. RUBS if applicable

3. Renovations for rent increase

4. What expenses can you reduce usually?

What else do you guys do to increase NOI or decrease Expenses in your first year operating a new asset?

I am trying to master underwriting so I can help an active syndicator with their acquisitions!

Thank you!

[Hadar Orkibi]

@Nicklaus McCain first, at this point of the market environment please keep in mind that rent increase may not be possible in the next 3-6 or even 2 months.

There is a wide range of ways you can reduce expenses apart from the ones you mentioned above.

One of the easiest ways is to shop around for better quotes for Insurance and contract services.

Some owners input expenses which should be under R&M, more often then not you will see CaPex under R&M so they can deduct it and not depreciate.

Water conservation programs is another way, or sub mitering.

Marketing is another that some operators over spend, and some under spend.