Multifamily Acquisitions vs. Development

Symon He
A free video tutorial from Symon He
Author | Investor | Entrepreneur | Stanford MBA
4.4 instructor rating • 12 courses • 217,972 students

Lecture description

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

Learn more from the full course

How to Analyze Multifamily Investment Opportunities

Learn professional techniques and use investment-grade models to analyze multifamily investment deals

09:48:39 of on-demand video • Updated July 2020

  • 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
English [Auto] Now there are lots of differences between you know apartment acquisitions and apartment development. OK. You know Simon and I we considered including development aspect to this course. But you know as I got through the curriculum you know it just became very apparent that it needs its own course. Basically apartment development is its own thing. It is totally different than an apartment acquisition because you know an acquisition the building already exists. Right. The land has been bought the plans have been approved the building has been built. Its been operating its a proven business model right its a proven thing. And you know real estate development and apartment development is anything but that is basically the complete opposite. So maybe there is no land you have to go and find a site and get to study the market identify a site and kind of go through that whole process of you know getting the land building the building leasing up the building and kind of proving that the market can support the product that you're building because you are building a product it's almost like building a new product from scratch. Yes there's general demand for housing. But you know a new development project is unproven and there's an inherent risk with that that you know you just don't get with the acquisition of an existing building. So the next slide I'm going to go over a little bit you know with the different steps involved with the development process just to kind of give you a primer on real estate development and kind of set the stage for maybe our next class on real estate development and multi-family development. And you know I have the models in Excel for multi-family development in addition to the acquisition models that you're going to receive here and it's very robust and I think this would be a nice lead in to that class so hopefully you learn a lot and look forward to speaking to a little bit more about multi-family development. Now we're going to cover just the stages of development in general.