Hello and welcome. My name is Gino Barbera, one of the co-founders of Jake in Gino. And in this how-to

video, if you want to learn how to analyze a property properly in multifamily, stay tuned. This is the

multifamily analysis, the do's and the don'ts. Now, we've seen deal analysis over the last

couple of years. It's been the Wild West. If you go back two

years, people were buying stabilized assets. That means assets that were stable, right? The occupancy

was above 90%. Markets, rents were where they should be or close to it. They were buying those

deals that were stabilized on bridge debt because the debt coverage ratio was not able to get

hit at a 1.25. It was insane a couple of years ago. Everyone thought, hey, this is the way

you buy deals. This is the way you analyze deals. Well, for those of you that were in the business

for years, Jake and myself saw it coming, a lot of people got their pens or pencils and they

had pencils down.

They made a lot of mistakes.

Now, what people should technically do is when you're buying deals, you're buying it on a pro forma.

You're not buying on a broker's pro forma.

You're buying it on your pro forma.

And short-term debt, not saying it's good or it isn't we haven't used it we like at least five-year terms on our deals it gives us a little bit more time now if you're the

type of group that can move real quick and you can anticipate getting a deal done in less than 24

months or 36 months whatever that timeline is's a chance, there's a risk.

You know, you run out of time in real estate, you can go bankrupt.

So you're buying on a pro forma.

Always keep that in mind, but you're borrowing on actuals. So whatever the actuals are, that's what it is.

And that's why they had to get the short-term bridge debt, which was risky because

...