All Forum Posts by: Eric Bergin

@Arta Montero

The models are at http://tsmfinancialmodels.com

The online zoom classes on financial underwriting are at http://tsmfinancialacademy.com

@Arta Montero I use the multifamily excel model from TSM Financial Models. I’ve used that model to underwrite a number of deals without any problems.

@James York no. They leak and people think they can run everything through them which just clogs them up. If you have one and don’t use it, it will rust and stop working. Remove and/or don’t install.

@Charles Barr if you are new to the hotel game, you need to understand the modeling in and out. Know how the institutional money underwrites the deals and you will be able to identify the potential returns on the deal more accurately. I’ve acquired a number of hotels with my pere job and like to use the hotel model from tsmfinancialmodels.com. It saved me from having to create one on my own. I think they also do training sessions through their academy.

But, hotels are a different animal. You need to understand the competitive set, and the penetration of the subject property to that competitive set. Get some STR reports to see how the markets have done and are projected to perform. Understand the drivers of the room revenue (transient/group), f&b, etc. hotels are getting crushed right now so there could be an opportunity.

@Todd Dexheimer @Carl Millsap I would be happy to run a costar report for you for the property to let you know the comps/demographics/etc. usually those reports are 100+ pages and then you can dump the sale/lease comps into your financial model directly if it is set up for that. I use models from tsmfinancialmodels.com and I just export out of costar and paste into the model and it updates automatically...then I just need to make sure I am comfortable with the costar comps.

@Claudiu Peter will start looking for some properties for you and let you know. First step is to spend a small amount of $ on a proven financial model that you can use to underwrite the potential investments quickly.

@Ryan Daigle exactly. You will need a financial model that the lender can understand along with rent roll, trailing financials, property condition report, etc. I think the financial model is the most important aspect for you and the lender so you can more easily run the general vacancies and capex that others have suggested.

@Greg Scott I agree that the loss to lease should be higher at acquisition or the numbers probably don’t make sense to acquire the property. I interpreted the video as saying 2% loss to lease is what you should expect once the property is stabilized. Obviously it depends on the market and rent growth, etc. but you disagree with that number? You would expect to see higher ratios once you are fully leased at your rates?

@Joshua McClam let me know how it goes. On the model side, I bought a storage model from tsmfinancialmodels.com and it’s awesome. Came with an hour of consultation too which was great.

@Julio Ordonez If you have access to Costar, run a report on the property to see comparable sales. A lot of times, the cap rate isn’t listed but it will give you $ and $/unit stats.