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Multifamily underwriting in 7 steps https://lnkd.in/gWy_avnm

CMBS Data Indicates 3-Year Growth in Multifamily Distress. Multifamily special servicing rates have surged to 5.71%, with more distress expected over the next three years. Rising interest rates, inflation, and looming loan maturities are contributing to financial strain for multifamily property owners. CMBS expert Mark Silverman predicts the situation will worsen before improving, with refinancing options looking slim and higher servicing rates likely. Questions About your Impending Loan Maturities? Call Me Today at 925-431-9508 for Answers! Brian Sanchez | Multifamily Broker Intero Commercial BRE#01768654 https://lnkd.in/gTuzNHPS

▶ MULTIFAMILY ◀ 🔴 Multifamily Bridge 🔴 ◼ Brief description - Loan on short-term multifamily projects ◼ Property type - Multifamily, condos, mixed use with majority residential (at least 51% residential) ◼ LTV / LTC - Up to 75% of cost ◼ Terms -18 to 24 month term (via extensions) ◼ Loan Amount - $3M — $15M+ 🔴 Multifamily Term 🔴 ◼ Brief Description - Loan on long-term, stabilized multifamily property ◼ Property Type - Multifamily, condos, mixed use with majority residential (at least 51% residential) ◼ LTV/LTC - Up to 75% of cost Up to 75% of value ◼ Terms - 18 to 24 month term (via extensions) 3, 5, 7, or 10 year term ◼ Loan Amount - $1M — $50M+ Reach out via email: raymondsmith@lendingmarkcapital.com

For those anticipating multifamily distress, the wave is building. As part of my consulting practice, I’m seeing a groundswell in underwater housing assets across the south east. Acquired at the peak of the market, things are now floating back down to earth (and back into the realm of historic pricing ranges once more). Having been the awkward beneficiary of working for companies where I’ve seen firsthand the impact of poor market timing, it’s critical to remember that basis is forever— it’s much easier to correct course at a distressed property when you get it at the right price, versus paying high and hoping you can sell higher.

- Dos in Multifamily Real Estate Underwriting: 1. Accurate Income Projections: Use realistic income estimates; DealWorthIt makes this quicker by pulling current market data. 2. Conservative Expense Estimates: Estimate costs conservatively; DealWorthIt makes it easier to factor in all expenses and add buffers. 3. Evaluate DSCR: Ensure strong DSCR; DealWorthIt simplifies this by automating NOI calculations and debt assessments. 4. Plan Exit Strategies: Consider multiple exits; DealWorthIt aids by analyzing scenarios aligned with your goals. - Don’ts in Multifamily Real Estate Underwriting: 1. Avoid Aggressive Growth Assumptions: Base underwriting on conservative figures; DealWorthIt supports this with market-based data. 2. Don’t Skip Market Comparables: Always check comps; DealWorthIt speeds this up with instant access to data on properties in the market. 3. Don’t Ignore Cap Rate Trends: Stay informed on cap rates; DealWorthIt ensures your valuations reflect current and historical trends. 4. Stress Test Your Assumptions: Prepare for worst-case scenarios; DealWorthIt helps by running comprehensive stress tests effortlessly. Ready to elevate your multifamily real estate underwriting? Start using DealWorthIt today and make informed investment decisions with confidence!

Investing in multifamily real estate is simpler than you think! 👀 Busy right now? Save this for when you're ready to invest in your first multifamily property! 👇 Strategy: Wholesaling and Multifamily Syndication (find undervalued deals, secure them, and use other people’s money to buy them) Type: Multifamily Properties (6-12 units for consistent cash flow and scaling your portfolio) Key Figures: ROI (Return on Investment): This measures how much profit you get relative to what you invest—aim for 20% or higher. Example: If you invest $100k, you should be earning at least $20k in profit annually. Cash Flow: Calculate your rental income minus expenses like mortgage payments, property management fees, maintenance, and insurance. Positive cash flow means you’re making money each month. Profit Determining Factors: Location is crucial—target areas with high rental demand. Property condition—ensure it’s attractive to tenants willing to pay top rent. Purchase price—negotiate the best deal upfront; often, your profit is made when you buy. Risks: Vacancy periods—no tenants, no income. Tenants not paying rent—screen tenants thoroughly. Unexpected repairs—always have a contingency fund and multiple exit strategies. Advantages: Monthly cash flow—income from rents. Property appreciation—watch your net worth grow. Leverage—control a large asset with a smaller investment using other people’s money. Follow for more strategies on how to invest in multifamily properties and achieve financial freedom! #multifamily #multifamilyinvesting #multifamilyrealestate #multifamilymovement #multifamilyinvestor #multifamilyinvestors #multifamilyproperties #multifamilyinvestments #multifamilyhomes #multifamilyproperty #multifamilyinvestment #realestateinvesting #realestateinvestor #realestatetips #realestateadvice #househacking #homebuyingtips #multifamilysyndication #multifamilyhome #realestatewholesalings

In multifamily deals, timing can be the difference between securing a great opportunity or missing out. A quick underwriting model helps you separate winners from losers fast, without wasting valuable time. Here’s how it works: Instead of diving into full underwriting for every deal, which can take hours or even days, a quick model allows you to evaluate key metrics like cap rate, NOI, and cash-on-cash return. You can even use more aggressive assumptions at this stage—if the deal works with those, it’s worth a deeper dive. But if it doesn’t pencil out, even with favorable assumptions, it’s safe to move on and focus your energy elsewhere. Example:   Let’s say you’re reviewing 10 properties. Full underwriting could bog you down for days on deals that don’t fit your criteria. A quick model lets you eliminate 7 right away and focus on the 3 that show real potential. In a competitive market, efficiency matters. A quick underwriting model helps you filter out weaker deals faster, so you can focus on the ones that truly have potential. If you like this then follow for more such posts!

Why Most residential investors are investing in Multifamily properties more than before? If you want to stay up-to-date with us, follow our Page. #multifamilyrealestate #multifamilyinvesting #multifamilyinvestment #multifamilyproperty #multifamilyinvestors

🏠 Navigating Variance Real Estate Approvals 🏠 Get the full details from Mortgage Rater here 👉 https://lnkd.in/gwSkSmFd #MortgageRater #MortgageTips #HomeLoans #MortgageNews #FinanceTips #HomeBuying #InterestRates #MortgageBroker