Multifamily Deal Analyzer Spreadsheet (Excel, Google Sheets)

Intro to How we analyze a multifamily deal 0:00 you never want to lose a piece of 0:01 property and Buy and Hold real estate 0:03 that is how you truly build wealth and 0:05 real estate today we’re talking about 0:07 how to assess a deal and this could be a 0:09 pretty short video today because it’s 0:10 actually ridiculously simple so we’re 0:12 going to roll right into it Welcome to 0:15 our Channel 0:17 [Applause] 0:17 [Music] 0:19 welcome back this is Cody I’m here with 0:21 my buddy Christian and today we are 0:24 talking about how to underwrite and 0:25 really just assess if you should buy a 0:27 piece of real estate now there’s only 0:29 three things you got to think about Are you going to hold the property forever? 0:30 number one would you like to hold it 0:32 forever we don’t like to sell real 0:34 estate we’re not flippers I’ve done a 0:36 flip he’s done a flip we made multiple 0:39 six figures between the two of those and 0:41 it was a great deal however I wish I 0:43 could have held the real estate would 0:44 have made a lot more in the long term 0:45 and that’s usually the case for most 0:47 people that sell real estate so would 0:49 you envision yourself owning this in 30 0:51 40 50 years 0:53 if the answer is yes then we proceed to 0:55 number two which is can you buy it which How do you buy your next multifamily deal? (what is the actual deal) 0:59 is really how do you buy it deal that 1:01 Equity you find a deal then you locate 1:03 the debt and then you figure out the 1:04 equity it’s one thing to Envision 1:06 yourself owning something forever that’s 1:08 great but in practical application you 1:11 have to find the deal that you want to 1:12 buy then you have to be able to line up 1:14 the debt and the equity and the last 1:15 piece is you have to make sure you never 1:17 lose it yep you never want to lose a Never Lose your real estate 1:19 piece of property in Buy and Hold real 1:21 estate that is how you truly build 1:22 wealth in real estate you can’t lose it 1:25 because then you have to start all over 1:27 again that’s not fun yeah not fun at all 1:29 how you lose it is simply we need to 1:31 find a deal that cash flows day one 1:32 that’s the first and foremost if it 1:34 makes money much easier to hold than 1:36 something that loses money buy and lose 1:37 real estate is not as fun as Buy and 1:40 Hold so that’s the cash flow well now 1:42 what are we looking at next it has to be 1:44 long-term debt if I have a great cash 1:46 flowing deal and I have a 90-day loan on 1:49 it I can probably afford to hold that 1:50 deal for about 90 days oh good math 1:53 I could do about 90 days to hold the 1:56 length that is really important so we 1:58 have long term cash flowing next thing 2:01 and this so many people forgot this 2:03 fixed rate debt you cannot have debt Fixed rate debt 2:06 that just changes people love variable 2:08 rates oh you sure can it just won’t go 2:10 well well yeah I mean you can 2:11 technically do it is it a good idea also 2:13 no 2:14 um so with the fixed rate what you’re 2:16 doing is you’re eliminating variables 2:17 you’re going I am fixing my costs so 2:19 that I know that cash flows now at this 2:20 number I’m getting fixed rate debt over 2:22 a long period of time which means 2:24 everything’s constant 2:26 if I am not a good operator I can 2:28 improve cash flows potentially lower 2:30 expenses and it will just do better and 2:33 better and better 2:34 what I don’t want to do is halfway 2:36 through my loan have like we just had 2:38 happen a lot of people on interest rates 2:40 go from three and a half to eight 2:42 percent on variable interests I had that 2:45 happen on a HELOC in my house where I 2:47 went from five to eight not a loser yeah 2:49 fortunately it was a hundred thousand 2:51 dollar loan in our 12 million dollar 2:53 debt portfolio that being said that 2:55 hundred thousand 2:57 I I’m like wow my payments really went 2:59 up can you imagine if you’re one of the 3:01 people who will hold a hundred million 3:02 dollar loans and they’re out there I 3:04 know of a few I won’t name drop here but 3:06 you have hundreds of millions in debt 3:08 and it all of a sudden went from three 3:10 to eight percent 3:11 game over you lose start over from 3:14 square one yeah buy and lose real estate 3:16 yeah that’s a strategy but that’s as 3:18 simple as it is you have to have assets 3:19 that you want to hold forever that’s the 3:21 other I think that’s the one other thing 3:22 you really it’s 3:25 yeah and that is what I want to end on 3:27 that is the main thing is do I want to 3:30 hold it forever yeah follow the rest of 3:32 the steps make sure you can hold it 3:33 forever and that you would like to hold 3:35 it forever then you just have to sell 3:36 for how do I buy it how do I never lose 3:37 it will it be fun because if it’s not 3:39 fun you’re not going to want to hold it 3:39 forever and then you become like a 3:41 flipper and everybody flips tends to 3:43 regret it and that’s it like subscribe 3:45 for more 3:47 [Music] 3:58 thank you 4:00 [Music]