All Forum Posts by: Brock Mogensen

I'm assuming you are referencing an underwriting model instead of loan calculator?

Having a good understanding of how to underwrite industrial deals is critical, as there are some major differences between multifamily and industrial underwriting.

I built out a custom model for underwriting Industrial deals, has helped a ton.

 Yes, I did. I will send you a DM with some further info

Track record, a strong deal, conservative underwriting, realistic returns, good debt terms. These are some of the things sophisticated LP's look for.

Those that didn't put the right debt on their properties and are bad asset managers will see some pain. Those that have conservative debt, liquidity, and are strong operators - will capitalize.

You are likely talking about a syndication not a fund..big difference. Syndication is deal by deal, fund buys multiple deals. There is extraordinary differences on the legal/compliance side between the two.

For a syndication, offering equity for investors is the most common way.

There are many different fees and structures you can go with.

I suggest learning the underwriting side of syndication deals before engaging an attorney. And you definitely want to engage an attorney and not just copy and paste docs.

Happy to send over my underwriting model for syndication deals, just shoot me a DM.

I love NNN. But there are some differences you need to be aware of compared to multifamily.

The lease is the most important part. How much term is left, strength of the tenant, rent escalators, rent/sq ft, etc.

You also want to make sure you have a good understanding of the roof, parking lot, and mechanicals because in a traditional NNN lease, the landlord is reponsible for these items..and they can get expensive.

If you're planning to invest in another market/out of state, you want to really understand the market. A common mistake is investors see the low price/doors in the midwest and don't truly understand the location. C-class locations can make money but your operatins need to be on point. Solely having a PM isn't all it takes, asset management is critcal. That being said, definitely want to get the cash to work. Either become an expert in the niche/market you want to invest in or invest passively alongside an experienced investor (syndications/funds).

Agreed. It's one thing if a deal is performing poorly, but to ghost your investors and then threaten them, not ideal. 

I would suggest starting with syndications instead of fund structure, if you are planning to just do capital raises on a per deal basis. The legal and compliance side of a fund is much more complicated than a single syndication deal. We've done 13 syndications and just pivoted to a fund model..so talking from experience.

Certain deals/funds will have stronger cashflow vs others are stronger upside. If cashflow is your main priority, I suggest looking for a fund that offers a high preferred return (10%+). However, you do want to make sure the deal has legs to stand on to actually hit the pref.