#realestate #success #motivation
Dad teaches kid how to underwrite a real estate deal using units, rents, vacancy, NOI & cap rates to determine prices paid. Also how to compare to replacement cost & improved value because of rent increases.
This is real estate MADE SIMPLE!
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We are about to enter the greatest real estate cycle in my lifetime. Get prepared for it. I’ll show you how to get in the game.
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Wish i had a father like that, most of us have to figure out everything by ourselfs
yes
We got YouTube
First! Grant people understand how smart you are just because you speak simply. I appreciate your gems 💎 🙌🏾!
Yall thought Rich kids don’t know nothing, what were you being taught at 14? Being rich makes you figure things out faster.
This is so simple, thank you!!!
00:00 🏢 The video focuses on underwriting a 500-unit real estate deal in Chicago worth $150 million.
01:11 🧮 The process involves calculating total gross possible income based on average rent, taking into account occupancy rates and additional income sources.
03:00 💰 The Net Operating Income (NOI) is derived by subtracting expenses from income, which helps determine the price to pay for the property.
03:46 🏗️ The property is considered a good deal, as it’s estimated to be $150 million below the cost of replacement. Increasing rents can significantly raise the property’s value.
05:22 💵 The strategy could potentially yield substantial returns for investors, with the property’s value projected to increase by over $100 million if rent hikes are realized over a decade.
This is not underwriting, however it’s called a Back Of An Envelope/Back Of A Napkin analysis which is a quick way to tell if you should do the deal or not.
If you do the deal then underwriting is way more intensive and includes a variety of metrics for acquisition, debt service, interest rates, cash flows and returns over the hold period.
Now if I only had 150M to pay cash for the building and not have financing costs eating into the income
Thank you Grant! Can you adopt me? Great example of how to be a dad.
Thank you for this contact I always wondered how to underwrite a deal because I never understood where your values came from as far as the numbers, so thank you for sharing this I look forward to building with you in the future
Why did they consider the scenario of rebuilding the property? (300 M – 150 M = 150 M)
Look at previous full cycle deals with exits for syndicators. That’s where theory meets real world application and if what was proposed was delivered or more. Then look at where markets are at today with that past strategy. See if that still holds true if the syndicator is investing in same type deals at a different point in the economic cycle expecting the same result.
Greeeaaattt sir✌✌✌✌👍
This is the Grant videos I fell in love with years ago
Love it
Hell yeah boss. That’s fucking genius.
BASED DAD ACTIVITIES
You make it sound so easy❤❤❤
With experience comes ease
Good deal. Good parenting.
Triple 👍 👍 👍 !
I wish I had had someone teach me like that when I was a kid!
I sincerely do appreciate your positivity and connection on this video. Stay blessed!!
Grant I Love ya Grant , and Sabrina You rock ! My daughter Jamie worked with me Side by side in our business. People would say your daughter is smart and carries herself Well! This isn’t luck Both of you work for this Good Job ! This video’s real Value is in Dad and Daughter! The real estate class takes a 2nd position! Rock ON !
I sincerely do appreciate your positivity and connection on this video. Stay blessed!!.