How to Vet Multifamily Deals in 2024, ep. 359

The market has entered a new cycle, and it’s very different from where we were even a year ago. How should you adjust your vetting process for multifamily real estate deals today? As the CEO of a multifamily firm, listen in as Ellie Perlman shares her expertise on how her team evaluates potential investments to ensure they align with their strategic goals.

Key Takeaways

Market Analysis:

-How to understand local and sub-market conditions: what to research

-Simple Google searches can provide valuable insights into market dynamics.

Financial Evaluation:

-Ellie discusses the importance of scrutinizing financials, particularly focusing on bad debt and rent growth.

-High bad debt could indicate issues with tenant quality or management effectiveness.

-Evaluating rent growth helps determine the potential for increasing rental income.

Management Team Assessment:

-How to choose the right property management team 

-How a strong management team can significantly impact the success of an investment.

Investment Committee and Underwriting:

-Ellie explains the role of the investment committee in adding a layer of scrutiny to ensure sound decision-making.

-Thorough underwriting practices help balance risk and opportunity, avoiding overly aggressive or overly conservative approaches.

Touring the Assets:

-The essential thing to do to understand the property's condition and potential.

-The 3 Key questions to ask during tours

Maintaining Discipline:

-Despite market changes, Ellie stresses the importance of adhering to disciplined pricing and yield targets.

-Staying disciplined helps ensure that investments remain viable and profitable.

Prefer to read the interview? See transcript here.

Watch the full episode here.

Are you REady2Scale Your Multifamily Investments?

Learn more about growing your wealth, strengthening your portfolio, and scaling to the next level at www.bluelake-capital.com.

To reach Ellie & her team, email them at info@bluelake-capital.com or complete our investor form at www.bluelake-capital.com/new-investor-form and they'll connect with you.

Timestamps

00:00 Introduction and Welcome

00:30 Overview of the Vetting Process

02:52 Key Factors in Deal Vetting

05:07 Importance of Market Analysis

08:23 Management Team and Underwriting

11:03 Touring the Assets

16:00 Final Thoughts and Contact Information

Producer: Blue Lake Capital

Strategist: Syed Mahmood

Editor: Emma Walker

Opening Music: Pomplamoose

#investing #deals #multifamily #realestate

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