How to Analyze Multifamily Investment Opportunities
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How to Analyze Multifamily Investment Opportunities

Learn professional techniques and use investment grade models to evaluate and analyze multifamily investment deals
4.9 (58 ratings)
Instead of using a simple lifetime average, Udemy calculates a course's star rating by considering a number of different factors such as the number of ratings, the age of ratings, and the likelihood of fraudulent ratings.
985 students enrolled
Last updated 7/2017
English
Curiosity Sale
Current price: $10 Original price: $105 Discount: 90% off
30-Day Money-Back Guarantee
Includes:
  • 9.5 hours on-demand video
  • 2 Articles
  • 24 Supplemental Resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
What Will I Learn?
  • Confidently evaluate multifamily investment opportunities
  • Identify and address key investment considerations for multifamily deals
  • Conduct proper market analysis for multifamily deals
  • Conduct proper financial analysis for multifamily deals
  • Understand and use key multifamily investment metrics
View Curriculum
Requirements
  • Real Estate Fundamentals
  • Working Knowledge of Investment Analysis Basics
  • Discounted Cash Flow
Description

Thinking about investing in multifamily apartments but not quite sure HOW?

Let us show you professional techniques and give you professional investment models to help you find the winners. 

THIS IS AN ADVANCED COURSE.

This course assumes a working knowledge of real estate investment fundamentals.  

We assume you under the fundamentals of discounted cash flows.  

That you have a working knowledge of IRR, yields, cap rates, etc...

If you don't have any background, take Symon's Intro to Real Estate Investing first.  

_______________________________________

What's covered in this course:

  • How to conduct market analysis at the regional, neighborhood, and competitive level.
  • How to conduct financial analysis for a multifamily investment.
  • How to analyze and verify income sources
  • How to analyze expenses
  • How to look at capital expenditures
  • Evaluating rent roll
  • Creating tenant profiles
  • Key points of negotiations for the Purchase & Sale Agreement
  • What is the Gross Rent Multiplier and how to use it
  • Review of key investment metrics in the multifamily context.
  • Proper due diligence
  • ETC...


AND multifamily case studies!

_______________________________________

What if I don't have any real estate background?

If you missed it earlier, this course assumes prior knowledge or background.  Go take Symon's Intro to Real Estate Investing course if you have ZERO background.  

Why is there so much math and numbers?

You can't properly evaluate a real estate investment without looking at its numbers.  So if you hate math and don't like numbers.  This course isn't for you.  Serious real estate analysis is probably not for you either. 

Why do you use Excel so much?

Good question.  Analyzing real estate investments involves looking at the numbers and it's easiest to do so with spreadsheets, which is why we use Excel here extensively.  But the good thing is you don't have to build any of the models yourself.  You just need to be able to follow along and then you'll be able to use the models we give you.  

These models are the same ones we built when we worked for multimillion dollar investment funds helping them find and analyze multifamily deals. 

Can you make me rich by taking your course?

No way! Not just from taking the course. Anyone who promises you that is selling snake oil.

If you take my course AND apply the learnings to make smarter invests in the future, then you have a chance.

What we can guarantee is that you will leave with some serious real estate investing knowledge and techniques.

What will I be able to do after I take your course?

After taking my course, you will be:

  • Able to confidently use professional real estate investment techniques to evaluate multifamily deals.

What WON'T I get from this course?

  • You will not get a Real Estate License from taking this course. You can only get licensed by taking the appropriate test with the testing agency of your state and country. But what is taught in this course has nothing to with getting a license, which focuses on how to legally transact real estate deals between buyers and sellers. This course is about investment analysis.
  • We will not be evaluating your personal investment deals for you in this course. This is about you learning how to do it on your own using the lessons and the tools here. =) If you really want us to consult, you can reach out to us. Our hourly rate is $350/hr.

Tell me again why I should take your course?

If you've read this far down, you already know why. You've always wanted to. So why haven't you pulled the trigger?

Ask yourself this: "What is holding me back?"

Are you afraid you'll actually learn what you've always said you would but never did?

Yeah, you'll have to put in the time and effort. If you're lazy, this course (or any other course) won't be able to help you.

But if you're serious about learning real estate investing, then I can definitely help you.

Plus, you have absolutely ZERO risk.

Udemy gives you a 30-day money back guarantee and they're really really good on that.

Who is the target audience?
  • Students with some background in real estate investing looking to explore multifamily
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Curriculum For This Course
80 Lectures
09:38:47
+
Jumpstart
6 Lectures 27:24

Overview of what we'll be covering in this section and the deal we'll be evaluating together.

Preview 01:02

Follow along as we conduct a market analysis for the jumpstart deal. 

Jumpstart Market Analysis
08:13

We conduct a financial analysis of the deal using our multifamily investment model.  Here we explore what the simple scenario of buying and holding might look like.

Jumpstart Financial Analysis I
12:23

We conduct a second financial analysis of the jumpstart deal, but this time we look at a buy, renovate, then hold strategy and see what that might look like.

Jumpstart Financial Analysis II
04:56

Quick recap of the jumpstart example.  

Jumpstart Summary
00:41

Jumpstart Model UNLOCKED - Advanced Students Only
00:09

Jumpstart Quiz
1 question
+
Market Research & Analysis
5 Lectures 48:43

Learn about the three levels of market research that we'll explore in this section.

Preview 00:58

But before you can analyze, you need to know where to find your data.  Here we'll go over some of the best sources for obtaining your data. 

Where to Get the Data
05:23

In this lecture, we'll go over the key aspects of conducting market research at the regional level.  What do you need to look into?

Regional Analysis
17:59

In this lecture, we'll go over the key aspects of conducting market research at the neighborhood level.  What do you need to look into?

Neighborhood Analysis
09:36

In this lecture, we'll go over the key aspects of conducting market research using competitive research.  How do you select the right competitive properties, what do you compare, etc...

Competitive Analysis
14:47

Market Research and Analysis Quiz
1 question
+
Multifamily Acquisitions Overview
7 Lectures 01:14:54

What part of the investment process make up the acquisitions portion?  What will be cover in this section on acquisitions?

Preview 13:57

Finding Value for Value-Add Strategy
07:38

Most of you want to buy and hold a multifamily property indefinitely and most will involve refinancing the deal.  

Long Term Hold & Refinancing
04:46

In this lecture you will learn how to maximize value of the property by physical improvements to the asset or improving the management of the property.

Multifamily Value-Add Strategies
04:02

What is the Letter of Intent and what are some of its common elements?

Letter of Intent
10:25

What are some key parts of the Purchase and Sale Agreement you need to understand?  Part 1 of 2

Purchase & Sales Agreement 101
16:03

What are some key parts of the Purchase and Sale Agreement you need to understand?  Part 2 of 2

Purchase & Sales Agreement 101 Part 2
18:03

Multifamily Acquisitions Overview Quiz
1 question
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Multifamily Investment Analysis and Metrics
27 Lectures 02:16:10

A quick overview of the Investment Analysis topics covered in this section.

Preview 00:20

Investing in real estate can be risky. In this lecture you will learn how to minimize your risk and feel good about your real estate investments.

Multifamily Investment Risks
07:41

Why you need to buy on actuals even when you invest for potential.

Price on Actuals, Invest for Potential
02:46

What is the gross rent multiplier, how to use it, and what are it's limitations.

Gross Rent Multiplier
03:34

Review of the capitalization rate metric and why it's more useful than the GRM

Capitalization Rate Review
05:34

What is the Loan to Value and when will you see this?

Loan to Value
02:49

The debt service coverage ratio is an important concept in real estate finance. In this lecture you will learn what debt service coverage ratio (DSCR) is, how to calculate it and how to use it. 

Debt Service Coverage Ratio
02:17

No matter what you're analyzing, it all comes down to how it could affect cash flows.

It's All About Cash Flow
01:42

Understanding a property's cash-on-cash return and when to use this equation is vital for real estate investing success. In this lecture you will learn what it is, how to calculate it and how to use it. 

Cash on Cash Returns
04:23

Learn what rule of 72 is and how to use it. It's great for quickly understanding how long it will take for your money to double in value. 

Rule of 72
01:06

When evaluating a real estate investment, there are two different ratios regarding returns that an investor should consider: equity multiple and internal rate return (IRR). In this lecture you will learn what they are, what’s the difference between them and why they are often reported together.

IRR and Equity Multiple Review
03:29

In this lecture you will learn what tax benefits come with real estate investing. 

Tax Benefits
07:52

When you analyze a multifamily property for acquisition, your analysis must include a thorough review of the rent roll. In this lecture you will learn what rent roll is, what can include and why it should be analyzed.

Rent Roll Analysis
10:44

What is the "real" vacancy of a multifamily apartment building?  Based on months occupied? Nope.

True Vacancy
01:20

In this lecture you will learn about pro-forma and actual statements. Also, you will find out when and what you should be able to review from the actual statement.

Analyzing Income Sources
05:02

The main source of income on most any property is usually the rent existing residents but most properties have other income opportunities. In this lecture you will learn about other income budget items.

Finding Other Income
04:09

In this lecture you will learn how to analyze current and potential expenses in several areas. 

Analyzing Expenses
04:46

Expense ratio is very common measure in real estate analysis. In this lecture you will learn what the operating expense ratio (OER) is, how to calculate it and how to use it. 

Expense Ratio
02:36

In this lecture you will learn what are capital expenditures and what they generally include.

Capital Expenditures
02:30

This lecture will tell you what repair allowance is and why you should ask for it at purchase.

Repair Allowance
03:28

In this lecture you will learn what are critical items in multifamily operations and financial statement analysis.

Critical Items
03:09

In this lecture, we will walk you step-by-step through an actual income statement. You'll learn how to read it and what important items to look for. Part 1.

Hands-On With the Income Statement - Part 1
11:37

In this lecture, we will walk you step-by-step through an actual income statement. You'll learn how to read it and what important items to look for. Part 2.

Hands-On With the Income Statement - Part 2
12:09

In this lecture you will find out why joint venture is formed, which are its advantages and disadvantages.

Joint Ventures
05:09

A key term to a real estate private equity deal is the sponsor “promote”. In this lecture we will define the sponsor promote, explore how promotes work and explain how they are justified as well as how they benefit both sponsors and investors.

Carried and Promoted Interest
06:25

It can be difficult to determine how a carried interest/promoted interest deal structure will impact the sponsor and investor financially. In this lecture, you'll be provided with a JV waterfall model and we'll show you, step-by-step, how to use it. This file is for annual cash flows.

Hands-On With the JV Waterfall
13:12

It can be difficult to determine how a carried interest/promoted interest deal structure will impact the sponsor and investor financially. In this lecture, you'll be provided with a JV waterfall model and we'll show you, step-by-step, how to use it. This file is for monthly cash flows.

Hands-On With the JV Waterfall (Monthly Cash Flows)
06:21

Investment Analysis Quiz
1 question
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Multifamily Due Diligence & Inspection
7 Lectures 41:20

What do we conduct due diligence and what are some common recommendations?

Preview 02:50

Is your strategy feasible? In this lecture you will learn how to find answer to this question.

Renovation Feasibility
02:37

This lecture will tell you why resident profile accuracy is important and how can good resident profile information help you analyze occupancy conditions, rent collection practices, and resident selection criteria.

Resident Profile Analysis
05:48

In this lecture you will learn why a thorough physical inspection of both the interior and exterior of the subject property is necessary. 

Property Inspections
03:42

In this lecture you will learn about zoning restrictions, rent control, building codes, and infrastructure.

Building Codes, Common Areas, and Zoning.
08:09

The lease audit is an extremely important part of your due-diligence. In this lecture you will learn what is it and why do you need it.

Lease File Audits
02:55

In this lecture you will see a list of items to investigate as part of an acquisition analysis.

The Due Diligence Checklist
15:19

Due Diligence and Inspection Quiz
1 question
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Intro to Property Management & Operations Optimization
11 Lectures 01:01:45

Even if you found a great deal, poor property management could kill an investment.

Preview 00:37

What are your options for property management?

Property Management Options
05:57

How can you find a good property management firm and what are benefits of hiring a property managers? In this lecture you will find answers to those questions.

Hiring Property Managers
06:20

This lecture we introduce you to multifamily staffing and general rules of thumb when it comes to staffing small, medium, and large apartment buildings.

Staffing Plans and Costs
05:44

What are some common fees involved when hiring a 3rd party property management company?  And what are some things to avoid.

Property Management Fees
12:53

Low occupancy rates can indicate that a piece of real estate has a problem. Learn what usual causes are.

Causes of Low Occupancy
06:00

The essence of an investment in real estate is a good tenant. In this lecture you will learn how to find and secure good tenant.

Finding and Securing Good Tenants
03:27

In this lecture you will learn about pricing strategies in different parts of an building.

Revenue Neutral Pricing Strategies
03:26

A rent matrix is a visual and analytical tool for determining rents. In this lecture you will learn how to use it and when to use it.

Using a Rent Matrix
08:41

How to find a software that fits your situation.

Property Management Software
04:20

What is RUBS and why you should consider it for your multifamily deal.

Ratio Utility Billing System (RUBS) 101
04:20

Property Management and Operations Quiz
1 question
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Case Study Examples
13 Lectures 02:42:56

In this lecture we will introduce to you a basic multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 4-plex apartment building.  Part 1.

Preview 11:38

In this lecture we will introduce to you a basic multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 4-plex apartment building.  Part 2.

4-Plex Buy and Hold - Part 2
12:18

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 1.

115 Unit Buy and Renovate - Part 1
11:44

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 2.

115 Unit Buy and Renovate - Part 2
11:16

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 3.

115 Unit Buy and Renovate - Part 3
11:28

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 4.

115 Unit Buy and Renovate - Part 4
11:11

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 5.

115 Unit Buy and Renovate - Part 5
11:07

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 6.

115 Unit Buy and Renovate - Part 6
11:34

In this lecture we will introduce to you an advanced multifamily acquisition model and illustrate, step-by-step, how it can be used to value a 115 unit apartment building that requires upfront CapEx and unit renovations. Part 7.

115 Unit Buy and Renovate - Part 7
14:26

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 1.

184 Unit Reposition - Part 1
09:43

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 2.

184 Unit Reposition - Part 2
18:12

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 3.

184 Unit Reposition - Part 3
12:04

In this lecture we will model the re-positioning of an 184 unit apartment building that has been mismanaged by the current owners. Part 4.

184 Unit Reposition - Part 4
16:15

Case Studies Quiz
1 question
+
Multifamily Development
4 Lectures 25:34

In this lecture you will learn what are differences between building an apartment building from the ground up and acquiring an existing asset.

Preview 02:13

While the process may vary slightly from project to project, in essence all property developments must go through the 8 stages. In this lecture you will learn what those stages are.

Stages of Multifamily Development
06:01

Introduction to the Multifamily Development Model
17:13

Multifamily Development Quiz
1 question

Lecture Slides
00:07
About the Instructor
Symon He
4.5 Average rating
2,093 Reviews
37,089 Students
10 Courses
Stanford MBA | Real Estate and Startup Consultant

Hey, thanks for checking out my courses.  

I am a real estate consultant and startup advisor based out of Los Angeles CA.

I currently help startup founders and small business entrepreneurs build financial models and projections for their businesses and private real estate investors with their acquisitions analysis and deal structuring.  Please message me directly for consulting inquiries.

Previously, I was Head of Marketing Analytics at the Panda Restaurant Group after first serving as a senior financial analyst leading real estate and new store underwriting efforts. 

Prior to that, I worked on over $400M in commercial real estate investments at a private equity real estate fund.  Before that, I worked as a manager in the global M&A unit for a Fortune 80 company. 

I am also a cofounder of LearnAirbnb, a consultancy and research group specializing in the home-sharing economy.  

I graduated Magna Cum Laude in Computer Engineering and Economics from UC Irvine and hold an MBA from Stanford University.

Brandon Young
4.5 Average rating
190 Reviews
2,087 Students
3 Courses
Data Scientist

Brandon Young is an experienced data science, finance, and real estate professional in Charlotte, NC. He teaches courses in financial modeling and real estate analysis. Brandon is a Marine Corps veteran and served in the United States, Asia, and the Middle East.

Education

Master’s degree in Real Estate Finance and Development from UNC Charlotte.

Master’s degree in Finance from Tulane University.

Bachelor’s degree in Management from Park University.