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Creative Capital

Creative Capital Podcast 224: Strategic Commercial Underwriting with Brad Hreha

Creative Capital

Josh Ferrari

Investing, Business

51.1K Ratings

🗓️ 23 December 2022

⏱️ 61 minutes

🧾️ Download transcript

Summary

In this week's episode, host Josh Ferrari chats with Brad Hreha about how to be strategic when underwriting commercial deals. We get to hear from Brad about how he underwrites his deals and what conservative underwriting means for him. He also shares some common mistakes he sees people make when underwriting, some general rules for preliminarily underwriting a deal and more. Enjoy!!

Brad's real estate career got started with wholesaling single-family homes. By using strategic marketing strategies to find off-market deals. Brad would find deals for his investors and negotiate a price with the seller. Once the deal was under contract, Brad would present the deal to his investors. Brad gained valuable experience with motivated sellers, negotiations, real estate contracts, rehab costs, running comparable sales, learning the market and different ways to structure deals for investors to maximize returns. Brad now works with a group of high net worth individuals who invest in multifamily properties. Brad invests in value-add Class B & C multifamily properties with 30-200 units in emerging markets.

How to connect with Brad:
Social Media: @Brad_Hreha
How to connect with Josh:
Ferrari Capital - https://ferraricapital.com/
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Transcript

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0:00.0

You're listening to the creative capital podcast.

0:08.1

You're dying to learn about how you can create wealth in real estate investing, then you

0:11.6

come to the right place.

0:13.7

Join in every week as we go over the ends and outs of real estate investing and learn

0:18.2

how you too can become financially free.

0:24.0

What I like to do is I figure the first six months that we own a property, nothing gets

0:29.6

done because it takes a couple of months to get in there, change the management around,

0:35.6

get people to understand, you know, the new management in place.

0:40.4

So we don't even consider renovations until, get someone into a renovated unit until

0:44.9

six months.

0:46.9

What's going on everybody?

0:49.3

This is Josh Ferrari, host of the creative capital podcast excited to be here today with

0:57.2

none other than Brad Reha, because we're talking about something that is obviously extremely

1:04.9

critical, crucial to commercial investing or any form of real estate investing for that

1:11.1

matter.

1:12.1

And it's not something we've dove really deep into interestingly enough as long as we've

1:16.9

been running the show.

1:18.4

So I was excited to have him come on with us and talk really deep specifically about commercial

1:22.5

underwriting, looking to underwrite those larger assets.

1:27.9

How you go about putting in the financial numbers, different rules of thumb, creative ways

1:32.2

to add value, you know, how can you actually look at a deal very fast, but still be efficient

1:37.7

to see if it's something that you actually want to pursue, see if there's something that

...

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