Видео

hey, thanks!

Thx!

Glad it was helpful!

I believe I emailed it you?

Thanks!

Wages are what you'd pay employees along with their benefits, taxes, etc. MGMT Fee is what you pay the management company to manage the day-to-day, generally a % of total revenue.

I appreciate it! I don't see why not. I've used some of the other MF proforma tools for mobile home parks and self storage analysis in the past.

I appreciate it! Yeah, generally, T3 is the industry-accepted revenue standard as leases tend to be longer term, and seasonality has less impact (unlike on expenses, especially in colder climates). But it's definitely worth comparing T3 revenue to T12 and making sure there are no anomalies, such as an upfront cable commission, that could skew the annualized revenue higher.

I appreciate it!

Thanks for watching

Thanks a lot, Angela! TBH, I don't do a whole lot of biz underwriting. I think I have a few one-off examples when helping friends/family over the years, but it's not my core expertise.

I do not, no.

No better time than the present!

Thanks, Dude! I go much deeper with these metrics within the Tactica blog: www.tacticares.com/blog-feed Feel free to use the search function to find what you're looking for.

That's great to hear! I don't offer any discounts. I'm confident all Tactica paid tools are reasonably priced for the value they provide users. Thanks for checking out the free and paid tools!

Glad you liked it!

Glad it was helpful!

You're welcome!

What's your project's stabilized NOI, and what cap rate have comparable new townhome rentals sold for in your market? You could get the sales comp intel from local brokers/agents. Take the NOI / Market Cap Rate, and that'd be a solid estimate of what the building would sell for.

The permanent financing LTV is a model input, and you'd need to determine if the DSCR output is adequate (will vary by lender). It would be easy to add conditional formatting highlighting the cell red if it falls below a certain threshold (1.25, as an example) to help make it more obvious.

We have zero control over the macroeconomic factors affecting future cap rates. Therefore, increasing the residual cap rate in the analysis is considered more conservative. This practice helps ensure we are not over-emphasizing future sale proceeds (especially when the IRR is the primary return metric) and hopefully seeing yield from cash flow/cash flow growth (more controllable factors). I've seen proformas that hold the residual cap rate steady for the the whole investment hold, but this is more risky. Even if you expect cap rates to go down in future years, it's still risky to bet on that in a proforma model. Ideally, your numbers work regardless of macro; stressing your model with higher residual cap rates is a great way to prove that.

Wow, that is a great, thought-provoking question. I'd lean towards no since there's no longer any investor equity in the deal, meaning the cash-on-cash return is infinite (denominator = 0) and, therefore, higher than the theoretical "all-cash" yield.

There's no wrong or right way to do this. I actually offer free, "back of the envelope" type tools that apply a blanket vacancy rate to all the revenue line items. However, I don't think of RUBS (or any ancillary income) as a contributor to the true effective rent at the property. Therefore, I like to keep them separate in the "other income" section. I'll most commonly underwrite "other income" from historicals (using a 3% escalator over T12 as an example). When there's an elevated vacancy at the property, it gets more tricky. I posted a video this week where I do a more thoughtful underwriting with "other income." While it's a different model, the financial inputs are exactly the same as in this video. You can see that here: ruclips.net/video/ehVPO2VehjE/видео.html At 30 minutes and 54 seconds of the link above, I underwrite other income tied to the vacancy. I hope that helps.

Thank you for the feedback. I'll check out the video. @@tacticares

Hey Quan, Next week (Thu/Fri).

I appreciate that!

I appreciate it! With time, I will do more tutorials. Candidly, in the current economic environment, finding a deal that works is incredibly challenging. IRR is just one metric I'd look at, but unfortunately, it's the most susceptible to manipulation. I think "yield-on-cost" is the most vital metric to consider when considering development: www.tacticares.com/blog-feed/yield-on-cost-metric-in-real-estate#development

Glad you like them!

@BK-ce3yg As you realize, the IRR is more complicated because it's "at the end" of the model, meaning all your assumptions and inputs lead to the final IRR. Creating a simple financial model independent of the main proforma (like I did in the video) would be incredibly time-consuming. You'd need to rebuild the entire proforma. To see IRR ranges, you need to use the actual proforma to run the scenario. To do this, you implement "dummy cells." I use this logic in Tactica's Development Model. I want to see how the IRR is impacted by lease-up, specifically: 1. pre-lease % 2. leases per month When the data table runs, it will use the proforma, swap in the ranges of pre-lease % and leases per month, and then return the results in the data table. Note: This will slow down your workbook considerably. It's crucial to implement: Formulas > Calculations > Automatic Except for Data Tables Or have an "Off" switch on your data table so it's not constantly running as you're changing inputs. Here's an article I found on the topic that explains it more thoroughly with images: www.sumproduct.com/thought/data-tables-with-off-sheet-inputs

Thanks!

Tactica only offers proformas for rentals at the moment.

Tactica only offers analysis tools for rentals.

My pleasure!

The model featured in the video is a paid tool: www.tacticares.com/multifamily-development-model Tactica also offer free templates as well: www.tacticares.com/free-template-vault

Thanks for watching!

I appreciate that, Andy. Glad you're putting the Tactica tools to work!

Thank you!

Thank you!

Glad it was helpful!

The spread will vary market by market. Pre-rate hikes, 1.50%, was a standard target spread in my neck of the woods. With the headwinds the MF sector faces, this spread should only increase.

Good to know, thank you for taking the time to answer@@tacticares

Hey Anthony, I'm speaking from the standpoint of the returns on our cash investment being objectively worse using leverage than purchasing with all cash. However, you bring up an excellent point that there's an opportunity cost to funding in cash, and you'd be wise to consider where else those funds could be impactful!

Would a discounted cash flow model be the correct model to use to assess whether the returns were adequent enough to justify getting financing and not paying cash for any given investment@@tacticares

I appreciate it! Any specific suggestions?

@@tacticares yes a simple breakdown of how profits get distributed to LP and GP in private equity using any standard fee structure

ruclips.net/video/eUsroR63TQ8/видео.html

Thanks, Chris! The blended average premium potential is $89 (calculated in Q68). However, it will take time to phase in these premiums. I set the renovation timeline to two years. Rent premiums are technically paid in arrears. Therefore, we will see the full premium potential in Year 3 (after all renos have been completed). In Year 3, the "average premium rent" hits $89. I explain the renovation logic in-depth here: www.tacticares.com/blog-feed/the-ultimate-guide-to-multifamily-value-add-underwriting#renovations

Hi Francis, It's linked in the description. I appreciate it!

Thanks for watching!

Hey Darryl, All Tactica tools (free and paid) are complete self-service. I'm not offering any additional support at this time. Thanks, Ike

Tactica offers both free and paid proforma underwriting models, depending on your needs. Free: www.tacticares.com/free-template-vault Paid: www.tacticares.com/financial-models

Glad it was helpful!

My understanding is that there are two escrows for HUD 221(d)(4) development financing: Working Capital, and an Operating Deficit. Both are funded with cash or a letter of credit. Any unused funds will be returned at various project milestones, and once specific investment criteria are met (construction completed, a year after completion, six consecutive months of a 1.0x DSCR). I don't think these escrows accrue interest, but you should check with a HUD lender.

Instead of having a firm list price, some brokers "suggest" to potential buyers a price range that they expect the asset to trade at.

@@tacticares i see thx