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Episode 16: Don't fall for SHINY Returns, Understand the Multi Family Financials

All multifamily deals are not the same, they might show you high returns, but what does the projected SHINY numbers truly mean? Multifamily is one of the most popular asset classes in commercial real estate. Apartments are said to be one of the easiest product types to understand without the complexities of long-term leases that can come with office, retail, and industrial properties. But what does the underwriting process look like, and how do you actually determine what a multifamily property is worth? In this episode, we talk all about multifamily underwriting with Author, Speaker, and Founder of Lone Star Capital, Rob Beardsley.

Who is Rob?

Rob Beardsley oversees acquisitions and capital markets for Lone Star Capital and has acquired over $350M of multifamily properties.

He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.

Topics on Today’s Episode:

  • How did Rob get into real estate?
  • What financial report does he get in terms of underwriting?
  • What are the key assumptions on the debt side of the model?
  • What are the three things one should look at in the debt structure?
  • Cap rate expansion and why it matters in the market



Connect with Rob: 

Website           Linkedin.           FREE Underwriting Model       Underwriting Book


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