All Forum Posts by: Brock Mogensen

Thank you all for the responses. I think I was looking for a simple answer to a much more complex question and it looks like there is not a simple answer. Some background and more details...I've been investing in residential properties for the past 20 years and currently have a portfolio consisting of 14 single family and one multi family (quadraplex) properties all located in Florida. I've also been a real estate broker for the same amount of time. I can accurately analyze residential properties in my sleep but over the past six months have started to focus on larger multi family properties. For example we are currently looking to acquire an 10-20 unit small apartment building as it seems a logical "next step" up from where we are currently. With that said, we have started to learn how to use the multifamily underwriting spreadsheets including the "napkin" underwriting spreadsheets. As we are still experiencing that learning curve I was looking for something that was perhaps even an easier/quicker way to look at initial numbers. We currently have a line of credit at 8.5% which is more of a bridge loan that we have to refinance any acquisition within six months with an approximate 6% interest rate. Our plan is to launch a PE fund this year offering a 7% annual return (all though 4-6% might be more realistic right now). I've got several variations of underwriting templates with some allowing for the calculating of investor returns and some that do not. The ones that do are too complex for where we are right now (we are looking for someone to add to the team that lives and breathes underwriting deals with spreadsheets). For example the one we have has allocations for Class A shares...Class B shares etc. I am trying to keep it simple and underwrite with just making sure we can pay investors the 7% annual return plus other expenses of course. Hence why I thought that perhaps as long as the underwriting shows a greater Cash on Cash return of in this case 15.5% (the 8.5% LOC rate plus the 7% investor annual return) the "debt" would be covered. Hope that makes more sense. @Brock Mogensen would love to see a copy of your model! Thank you!!! 

What do you feel has been the biggest struggle or obstacle to reaching FI through RE?