What You Need to Get Started in Multifamily Syndication

We were talking with some investors that are breaking into multifamily properties and they were trying to figure out analysis and generally what do they need just to get started, but we like just do our basic analysis. You can get that from either the broker or direct from seller. The seller has a T12, which is trailing 12 months of financials, which basically will show how the property's operating on a month-to-month basis for the last 12 months. It's not a year on year or unless you're getting it in January, but gives you the last 12 months, and along with that is the rent roll showing you the current rent roll and that rent roll will basically be a list of all the tenants their monthly payment what they've actually paid. The market rate, what is supposed to be the market rate for that same unit, a deposit, if they're holding the posit and maybe if they have some late payments or some other things or some other fees on there as well.

Past that, if we can get and depends if it's done by a broker or not, in an OM an operating memorandum, just giving more context in the property and a more description on the area. Those would be the three things on a basic level that we would want to get for our analysis and we could back away in without that, but our preference is always to have these pieces. Sellers or brokers, if we don't at least have the T12 and rent roll we're going to make assumptions and those assumptions will be better, how specifically we are with the area, but ideally knowing what the property is doing we're able to give them a more outlined offer if it makes sense to us and really just have less questions even though we're going to ask a ton coming to the initial talk about their property in general.

So that's what we would do to get started right there, at least have those basic items and they're not too much to ask, so if someone can't give them to you, I would think that may be a good thing because they're not maximizing their properties and maybe there's opportunities, but you're don't have to, at least know the area very well or rely on property managers and brokers, which you should, to help you understand your expenses are what your income drivers are and ideally the advantages upsides and possible downsides to the property.

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