586: The 8 Steps That Will Stop You From Getting Burnt on Multifamily Deals w/Andrew Cushman
BiggerPockets Real Estate Podcast
BiggerPockets
4.8 • 16.5K Ratings
🗓️ 22 March 2022
⏱️ 81 minutes
🧾️ Download transcript
Summary
Want to know how to analyze a multifamily property? Maybe you’ve analyzed duplexes, triplexes, quadplexes, or even ten-unit apartment complexes before, but what about the big deals? We’re talking about multi-million dollar multifamily investments, with hundreds of units, large debt and equity structures, and many, many small pain points only experienced investors would notice.
If you’re looking for an in-depth overview of how to find, analyze, and buy a large multifamily property so you can build passive income and serious equity growth, then Andrew Cushman is the man to talk to. Andrew is so good at what he does that he's partnered up with BiggerPockets Podcast host, David Greene, to invest together.
In Andrew’s previous episode, he touched on the “phase I underwriting” that comes with analyzing a multifamily deal. In this episode, Andrew focuses on what investors should do after they’ve triaged their deals and are left with only the best in the bunch. Andrew spent years worth of time analyzing deals to come up with these eight steps. He shares them today so you can have less headache and more investing success than when he started!
In This Episode We Cover:
How to quickly screen for potential hidden gems in the multifamily space
The eight steps that lead to perfect multifamily underwriting so you can make the best offer possible
“Loss to lease” and using it as a value-add opportunity that most investors miss
Getting debt quotes, insurance quotes, and accurately calculating future property taxes
Who’s opinion you need to ask for before going through on a multifamily deal
Looking for the opportunities and traps within a seller’s finances
Writing an LOI (letter of intent) and getting bigger deals under contract
And So Much More!
Links from the Show
BiggerPockets Podcast 571: Is This Deal Worth My Time? The 6 Crucial Steps to Vet a Multifamily Deal
How to Find Overlooked Opportunities in a Hot Market with Andrew Cushman
Parks and Recreation (TV Show)
Andrew's Visuals
Example 1 (Spreadsheet File)
Example 2 (Spreadsheet File)
Example 3 (Spreadsheet File)
Renovation Budget (Spreadsheet File)
Connect with Andrew:
Check the full show notes here: https://www.biggerpockets.com/blog/real-estate-586
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Transcript
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| 0:00.0 | This is the bigger pockets podcast show, 586. |
| 0:04.8 | Do not fall for the temptation of actual cash value insurance policies. |
| 0:09.9 | In most cases, a lender will not let you do that. |
| 0:13.2 | But if you're buying a property for cash or you're doing some kind of non-traditional debt structure, |
| 0:19.4 | don't fall for the trap of cool, I can save a little bit on my premiums, |
| 0:23.7 | because the minute you have a loss, it will come back to buy you big times. |
| 0:33.2 | What's going on everyone? |
| 0:34.0 | It is David Green your host of the bigger pockets podcast. |
| 0:37.2 | This show where we show you just how powerful real estate investing can be. |
| 0:41.1 | Our guests include food servers and firefighters, counselors and corporate execs, |
| 0:45.1 | people with a wide range of backgrounds with one thing in common. |
| 0:48.4 | They got the real estate bug, they got educated, and they took action. |
| 0:52.0 | Now it's our job to help you do the same. |
| 0:54.3 | Now we are going to do that today by bringing in my personal friend and multi-family investing partner, Andrew Kishman. |
| 1:01.5 | Andrew Kishman has been on this podcast several times. |
| 1:04.0 | I believe this is his fourth appearance, and he is a multi-family investing specialist. |
| 1:09.6 | On episode 571, we dug into what he calls phase one of his underwriting, |
| 1:14.7 | where he looks at would this property possibly work if everything went great. |
| 1:19.0 | In today's episode, we get into phase two where we verify is everything actually great |
| 1:24.2 | and could this deal work. |
| 1:25.4 | Now this is a very, very detailed, practical sort of information packed episode |
| 1:32.8 | where you could take the information and literally create the same system that Andrew runs. |
... |
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