And it's important to understand median income.

And that's okay.

Just going in eyes open, understanding that is so important.

So when you do your comp analysis, can you please give me a comparable analysis of any apartments in the surrounding area? Hello and welcome.

My name is Gino Barbara, one of the co-founders of Jake and Gino and of Barbaro 360.

And in this how to video, we're going to be discussing how to perform a rent comp.

It may be one of the, I don't want to say, easier things that you could possibly do when you're

evaluating a deal in real estate, whether you're looking at a single family rental, whether you're

looking at a self-storage unit, I'm going to be focusing on multifamily, but to me, the

principles still permeate throughout all of the niches in real estate. And for me, why is this important?

This is important on so many levels.

The first one is if you're going to be buying a deal, you create what's called a pro forma.

You're buying on your pro forma, not on the broker's pro forma.

Now, have you ever heard a broker say, yeah, this deal sucks,

there's no rent growth, there's no value add on this thing? No, you haven't because that's not the

broker's job. The broker's job is to paint a rosy picture and make this deal look as good as it does,

even though it may smell like a pile of dog crap.

And this is where your rent comps come in.

And it's important that you understand the market.

Now for investors who have experience and who have assets in the market, it's real easy.

When Jake and I look at a deal, we actually bought a deal last month, two months ago. And it was literally down the street

from an asset that we own. Same vintage, same type of asset. We know market rents. So when we go in,

...