All Forum Posts by: John Dorma

Hello,

When you look at bigger deals financials, what line items do you always adjust?

To quickly evaluate a a deal where there is no asking price, I usually look at capex required, adjust the property taxes (based on comparable sales) and perhaps play around with the vacancy and reserves.

Is there anything I am missing?

what is the latest version of his SDA ? 

Hello,

When I underwrite deals and analyze the expenses, I have problems to see what could be out of order (besides property taxes around 2% in Florida and management fee 3-5%). Since the deals also vary in size (100-400unit portfolios) and asset class (b+ to c- ) I was hoping someone could assist with some support. Are you looking at the per door expense? Is that the right metric to use to determine easily if numbers could be out of rack?

Thanks a lot 

Hi,

How do I calculate the rent per SF?

Gross Potential Income or Effective Income / net rentable SF or total square footage ?

Thanks

Hello !

When I receive a deal and I plan to make a quick and dirty valuation what is the right approach ?

I always removed the additional income because I feel I should not value a property for lost key fobs or pet fees.

Also, when it comes to Expenses I left the expenses as is and mostly increased the management fee from 2% to maybe 3% depending on the size of the deal and I always adjusted the property taxes.

Is that the right way to quickly value a property? 

Hi Guys,

when you receive deals , do you pay any attention to the financials and pro-forma in the offering memorandum or do you skip that part and do your own pro forma analysis?

I would think that the actual financials are the ones which count?

Hi, 
I have issues with figuring out how to underwrite a strip center . The center currently has 5 tenants .

• What vacancy loss should I take into consideration since currently  month-to-month agreements are in place?
  • I though of at least 10% because 100%/5 tenants = 20%share per tenant. If I loose one for 6months thats a 10% loss in REV, right?

How do you do your underwriting with strip centers compared to multifamily apartment buildings?

Thanks,

John