Underwriting an 88-unit Multifamily Development Project

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Tactica RES

Күн бұрын

Пікірлер: 12

@Lot39Investments 11 ай бұрын

Thanks for sharing!

@tacticares 11 ай бұрын

Thanks for watching!

@mayaro2 9 ай бұрын

Great material!! Can you underwrite one that you think is a GO!! P.S What is the IRR yield that will be consider a GO (20% IRR)

@tacticares 9 ай бұрын

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

@ArmanArmondo 5 ай бұрын

will be purchasing, any discount codes? downloaded back of napkin, thanks.

@tacticares 5 ай бұрын

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!

@kevinwoo239 8 ай бұрын

Does the residual cap rate ever go down? Why is it up in this situation?

@tacticares 8 ай бұрын

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.