🧑‍🎄🎄On the First Day of Christmas…MFMIM Deal Room: Underwriting Made Simple

Yeadon here from My First Million in Multifamily and the Deal Room…coming to you with a white painted Santa beard and the kickoff to something fun.

First off, yes, I know the 12 days of Christmas traditionally START on Christmas day..but…I’m going to mix it up just a bit.

12 days of real estate investing…🧑‍🎄🎄

Quick, bite sized lessons you can actually use to get better at this game.

Today is Day 1, and we are starting with the foundation of everything you will ever do in real estate underwriting.

Here is the simplest way I can explain it. Every deal you ever look at comes down to three numbers.

1. Market Income
   What income the property make at market rent.
2. Market Expenses
   What it costs to run the property and earn that income.
3. Market Value
   Income minus expenses gives you NOI. Divide NOI by the market cap rate and you get value.

That is it. Income. Expenses. Value. If you can get good at identifying those three numbers, you can underwrite apartments, storage, medical office, triple net, basically any real estate investment..

When underwriting feels overwhelming, remember, all we’re doing is solving for the big three.

If you want to sharpen the skill that separates amateurs from people who buy actual deals, hit reply and let’s talk. I just re-recorded our underwriting training and added 5 hours of deep dive walk through to it.

See you tomorrow for Day 2. No promises on whether the Santa beard makes a return.