Mike Morawski - Multifamily Underwriting 101

Key Takeaways

Multifamily investing requires a specialized vocabulary to navigate the industry effectively.

A rent roll is a critical document for understanding a property's income potential. Key items include tenant information, unit numbers, market rate rent, collected rent, lease terms, and unit mix.

Understanding operating expenses is crucial for profitability. Key categories include payroll, utilities, repairs and maintenance, insurance, taxes, and property management fees.

Understanding financial metrics like NOI, DSCR, and investor returns (ROI, IRR, cash-on-cash preferred returns) is essential for evaluating a property's performance.

Key terms like general partner (GP), limited partner (LP), share classes, waterfall returns, and sponsor fees are crucial for understanding deal structuring.

Thorough due diligence and underwriting are essential for evaluating a property's potential and risks.

Episode Timeline

[00:00:00] Mike introduces underwriting as a foundational tool for multifamily investing decisions.

[00:04:00] Analyzing income and expenses is crucial for assessing profitability and NOI.

[00:08:00] Capital expenditures significantly impact property value and investor returns.

[00:12:00] Evaluating rent growth and market conditions helps predict future income.

[00:16:00] LTV and LTC ratios determine debt capacity and equity safety.

[00:21:00] Interest rates, amortization, and DSCR are vital for securing financing.

[00:23:00] The GP team’s structure and roles ensure effective collaboration and management.

[00:28:00] Various sponsor fees compensate the GP team for their contributions.

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this episode!

Mike Morawski - The Top 3 Fundamentals for Multifamily Investing Success

Key Takeaways

Combine short-term cash flow with long-term generational wealth using tools like IRAs and 1031 exchanges.

Accurate underwriting with reliable data, like CoStar, builds investor confidence.

Regular networking and relationship-building are essential for expanding your investor base.

Use e-books and checklists as lead magnets to attract and nurture potential investors.

A well-maintained contact database is vital for long-term success and investor engagement.

Writing books and speaking at events boost credibility and attract investors.

Episode Timeline

[00:01:00] Mike's Solo Podcast Initiative.

[00:02:00] The three essential fundamentals for success in multifamily investing.

[00:08:00] Understanding underwriting processes and financial metrics.

[00:13:00] Introducing CoStar as a sponsor, describing its value in market data.

[00:15:00] Strategies for raising capital include effective networking.

[00:16:00] Mike compares raising capital to fishing and farming.

[00:18:00] The importance of nurturing leads through email marketing

[00:19:00] Database management and staying in touch with clients & investors.

[00:22:00] Closing remarks about balancing all three strategies

Contact

Website: https://mikemorawski.com/

Email: mike@mikemorawski.com

Check out this episode!

Travis Watts - Navigating Multifamily Market Cycles

Key Takeaways

Under promise, over deliver, do a little more than people expect of you.

Now is the time to position yourself in front of the next bull run.

Small incremental efforts, like making one more call or doing one more rep, can lead to significant long-term success.

The current market presents unique opportunities due to increased cap rates and decreased property valuations.

Travis's journey from single-family investments to multifamily syndications highlights the benefits of scaling through syndications.

Episode Timeline

[00:01] – Mike announces the upcoming Multifamily Summit

[00:03] – Introduction of Travis Watts from Ashcroft Capital

[00:06] – Travis’s investment journey from single-family homes to multifamily syndications   

[00:11] – Discussion on the current real estate market cycle

[00:17] – Potential for wealth redistribution through real estate investing

[00:20] – Travis explains the varying conditions in different markets and the importance of staying informed with data

[00:25] – Mike emphasizes the importance of efficiency in operations

[00:33] – Closing remarks and the importance of diversification in real estate investing

Contact

Website: https://speakwithtravis.com/

Check out this episode!

Todd Heitner - Optimizing Capital Raising: Mindset, Automation, and Communication

Key Takeaways

Mindset Matters: How you think about capital raising can significantly impact your success. Focusing on the positive aspects and opportunities can make the process easier and more fruitful.

Importance of Follow-Up: A key reason for losing potential investors is the lack of follow-up. Having a mapped-out process ensures that you stay in touch and guide potential investors through their journey.

Automation in Processes: Automating your follow-up processes, including emails and text messages, can help manage leads efficiently and ensure that no potential investor falls through the cracks.

Regular Content is Crucial: Regular contact with potential investors through newsletters, emails, and other content helps maintain top-of-mind awareness.

Diverse Communication Channels: Different people prefer different methods of communication. Utilizing a variety of channels, such as emails, texts, social media, and face-to-face meetings, can help build stronger relationships.

Specialized Tools and Resources: Using specialized tools and services like Apartment Investors Pro can streamline your process of building websites and managing investor relationships, ultimately aiding in raising more capital.

Episode Timeline

[00:01:00] - Introduction by Mike Morawski: The importance of mindset in raising capital

[00:02:00] - Introduction of guest Todd Heitner and discussion on weather

[00:03:00] - Todd Heitner shares his background and business.

[00:05:00] - Todd talks about his transition from cattle ranching to web design.

[00:07:00] - Discussion on the functionality and benefits of specialized websites for real estate investors

[00:09:00] - How Todd’s services include hosting and support.

[00:11:00] - Importance of automated and manual follow-up processes in investor relations/

[00:13:00] - Common mistakes in capital raising and the importance of having a mapped-out process.

[00:15:00] - Mike and Todd discuss the importance of follow-up and process in raising capital.

[00:18:00] - Effective communication methods for capital raising.

[00:19:00] - Discuss Todd's role in helping build processes rather than raising capital directly.

[00:20:00] - How to get started with Apartment Investors Pro and the best ways to drive website traffic.

[00:22:00] - Bonus questions: Todd’s favorite book and tourist attraction.

[00:24:00] - Conclusion and final thoughts by Mike Morawski.

Contact

Website: apartmentinvestorpro.com

Summary

In this episode, Mike Morawski talks with Todd Heitner from Apartment Investors Pro about the importance of mindset in raising capital, the role of automation in follow-up processes, and effective communication strategies for investor relations. Todd emphasizes the significance of having a mapped-out process to ensure no potential investor is left behind and shares insights on how to build a robust system for capital raising. They also discuss the importance of regular content and diverse communication channels in maintaining investor relationships.

Check out this episode!

Gib Irons - Capital Raising and Trial Law

Key Takeaways

Success isn't about being the smartest or most talented in the room; it's about the relentless determination to overcome any obstacle in your path.

Remember, it's never too late to pivot towards your dreams and find success in uncharted territories.

In the journey to success, never underestimate the power of forging connections with potential investors. Utilize social media, lead magnets, and referrals to connect and nurture those relationships into invaluable assets.

In the realm of success, transparency reigns supreme. Embrace honesty in your dealings, for investors value openness and the courage to confront challenges head-on.

Harness the power of social media, especially platforms like LinkedIn. Share your journey authentically, for in the depths of your narrative lie the keys to attracting the right investors.

Prioritize tasks wisely, seizing the dawn to conquer the day. In this rhythm lies the secret to sustained productivity.

Timeline

[01:01] Intro to episode guest

[03:41] One word that describes Gib personally and professionally.

[05:17] Gib talks about his background and how he got into the world of capital raising.

[14:30] How about a couple of systems that you have in place that you utilize daily, weekly to help you raise capital?

[20:45] Mike shares how he gained a massive following on LinkedIn.

[24:25] Do you use any lead magnets to attract people to your portal or to lead capture?

[25:58] Do you raise capital for other people's deals and how do you pick a sponsor to work with?

Contact

Website: ironsequity.com

Check out this episode!

Gino Barbaro - Navigating Market Cycles and Creative Financing

Key Takeaways

Life comes down to becoming and being persistent.

Focus gave me the clarity to continue to scale the portfolio.

You really need to focus on what you as an investor wants, ultimately what your goals are.

You can always buy real estate. You can always buy it in any part of the market cycle. You can't always sell real estate.

Market cycles have changed dramatically. The decade of from 2010 to 2020, there was no recession.

Understand where your market is and what part of the cycle and recession is trying to buy as much as you can.

Timeline

[01:09] Intro to episode guest

[02:56] One word that describes Gino personally and professionally.

[05:11] Gino talks about his background.

[11:21] What are your top three market choices for the coming year?

[16:47] Where do you think we are in the current market cycle?

[28:08] Gino shares three tips for closing a real estate deal in today's world.

Contact

Email: jakeandgino.com

Check out this episode!

Joel Friedland - Industrial Real Estate Opportunities

Key Takeaways

Industrial is the backbone of our country, really of the world. Everything is made in an industrial building.

Companies are coming back. It's called onshoring or reshoring where what they used to do overseas; they now need to do locally.

Real estate is a leveraged business for the most part.

You've got to have your back office. In my case, I've got two guys in my back accounting office that have been with me for 20 years.

Timeline

[02:24] Intro to episode guest

[03:41] One word that describes Joel personally and professionally.

[06:220] Provide a brief overview of your background, detailing your journey over the years, from your initial steps to your current role at Brit Properties.

[15:50] Do you just own your buildings and take care of all the maintenance and issues or are your tenants triple net tenants?

[20:04] So we have said that real estate's a leveraged business. Isn't your IRR or your return to your investors higher with debt on the property than it is when you're all cash?

[30:35] Let's discuss the real estate market briefly. Given that 2023 hasn't been an ideal year for real estate purchases, what has been your experience, and what are your insights on where the markets are headed in the next 12 to 24 months?

Contact

Email: joel@britproperties.com

Check out this episode!