Multifamily Underwriting 101
Investing is a team sport
Omar Khan is a manager at the Dallas, Texas private equity firm Boardwalk Wealth. Boardwalk provides international investors with a way to place money in US multifamily real estate properties.
Omar is a successful investor with over a decade of experience. He has advised over $3.7 billion worth of capital financing and mergers and acquisitions transactions. Omar is considered an expert in capital markets and strategic planning by his peers.
In this episode, Omar shares how he determines the value of an apartment building before entering into a purchase contract. He explains the process of underwriting as well as what it looks like from the viewpoint of an investor and a lender.
Omar and John dive into the details of CAPEX, upgrades, and how to factor them into his elaborate equation. Omar explains how to manage the time from vetting until closing the deal. He shares the common mistakes that most investors make before, during, and after a deal and offers up the “must do’s” to prevent them.
Five Key Points:
- 1) You don’t have to be the most gifted person on a team, but make sure you outwork everybody.
- 2) It’s critical to understand the track record of the people you work with.
- 3) Investing is a team sport – you shouldn’t be doing everything yourself.
- 4) The clock starts when an asset is under contract.
- 5) Don’t overpay.
Favorite Athlete:
- LeBron James, Cleveland Cavaliers Superstar
- Pete Sampras, Tennis Superstar
Favorite book:
- The Black Swan by Nassim Nicholas Taleb
Pro tip:
- Don’t be in a hurry to get into a deal, especially a deal with the wrong people.
Reach Out to Omar Khan:
- Email: [email protected]
Thank you Omar for taking the time to share your expertise on how to value and underwrite multifamily deals.
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Invest well,
John Carney
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