EP16: Don't fall for SHINY Returns in an Investment, Understand the Multi Family Financials with Rob Beardsley

04/27/23 • 40 min

Multifamily is one of the most popular asset classes in commercial real estate. Apartments are said to be one of the easiest product types to understand without the complexities of long-term leases that can come with office, retail, and industrial properties. But what does the underwriting process look like, and how do you actually determine what a multifamily property is worth? In this episode, we talk all about multifamily underwriting with Author, Speaker, and Founder of Lone Star Capital, Rob Beardsley.
Who is Rob?
Rob Beardsley oversees acquisitions and capital markets for Lone Star Capital and has acquired over $350M of multifamily properties. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.
How to connect with Rob:
Website: https://lscre.com/
LinkedIn: https://www.linkedin.com/in/rob-beardsley/
Get Rob’s free underwriting model: https://lscre.com/model
Grab a copy of his book: https://amzn.to/43YSASR
Book recommendation: Getting More: How You Can Negotiate to Succeed in Work and Life by Stuart Diamond
Show notes:
[2:14] How did Rob get into real estate?
[3:36] What is underwriting?
[4:44] What financial report does he get in terms of underwriting?
[6:20] Their underwriting model
[8:12] What are the key assumptions on the debt side of the model?
[10:58] What are the three things one should look at in the debt structure?
[12:44] Waterfall structure
[15:34] Predicting expenses
[17:45] Forced appreciation
[19:21] Why is the cap rate important?
[21:29] Cap rate expansion and why it matters in the market
[25:37] What to focus on in conservative assumptions
[34:15] How many properties does he underwrite to find the perfect investment?
[35:00] How does Rob think outside the stocks?
[36:27] Rapid fire
[39:50] Outro

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Disclaimer: This podcast is for education and information purposes only, not an investment opportunity or financial advice. Please do your own due diligence and consult your tax, legal or financial advisor, etc., to invest.

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EP15: A Real Life Case Study for our Very Successful Deal and Investing Nuggets for Healthcare Professionals with Leslie Awasom

So far, with the Think Outside The Stocks podcast, you heard about how you can invest passively in Commercial Real Estate and set your cash flow on autopilot. But what really happens when the rubber meets the road? In this episode, we will talk about a Real Life Case Study with our strategic partner, Leslie Awasom, Director of Operations and Co-Founder of XSITE Capital Investment LLC.

As a Healthcare professional, Leslie also highlights that despite healthcare jobs being among the highest-paying occupations in the U.S., like any job there is, it doesn’t come with a guarantee that you won’t lose that job when another financial crisis hits and your hard earned money in volatile investments like the stock market can put your retirement at risk.

We talk about passive investing for healthcare professionals with a real-life case study of our first deal together with our guest to discuss:

How we went through 300+ deals to find a needle in the haystack
Why we liked this investment.
Our Business Plan
What actually happened (including FIRE!)
How passive investors stayed completely passive
Why did we exit in 19 months instead of 5 years?
How did we hit it out of the park and also save on taxes for our investors?

Please note: past performance is not representative of future numbers. The projections and the returns are based on individual property, the market, and several other conditions.
If you want to consider investing with guests on the show, please perform your own through partner and investment due diligence

Who is Leslie?

Leslie is the Director of Operations and Co-founder of XSITE Capital Investment LLC. He manages the company operations, market/data analysis, cash flow, and budget analysis. Leslie bought his first investment property in 2017 and transitioned to multifamily investing in 2019.

Leslie is a also a trained Nurse Anesthetist. who lives in Hanover, Maryland. Leslie and the XSITE Capital team host a rapidly growing multifamily-focused meetup in Maryland, where they provide resources and add value to individuals interested in growing their wealth and changing their financial future.

How to connect with Leslie:

Website: https://xsitecapital.com/

Next Episode

EP17: How To Make Your LAZY Money In The BANK Work Hard For You By Creating Your Own Bank Using Infinite Banking System

Infinite Banking is an out-of-the-box strategy, that you may have never heard of or understood completely.
The goal of Infinite Banking is to use magic of compounding in your "savings" that are otherwise stagnant in a banking system. Instead you can create your own banking system, as a source of liquidity and financing that is separate from traditional banks and financial institutions.
Unless we understand our problems, it's difficult to understand the solution.
In Part 1 of this segment, I talk about the different problem areas when it comes to generational wealth. Is it growing or depleting? Is it truly safe and secure in the bank, or does it get easily affected by the banking system’s volatility and fluctuating interest rates? How about the tax leakages? Have you thought of exposure and asset protection? Are the limitations of contributions, access on tax-deferred qualified or educational plans helping you or harming you? Join me to ask yourself some thought provoking questions.
In the next episode, I will continue talking about how Infinite banking system can create a tax-smart vehicle, to harness uninterrupted compounding year after year, help you with your goals from investments, educational expense to retirement and finally pass generational wealth.
Let's start building a solid foundation that has certainty Vs volatility. Let's start thinking about growing, preserving, protecting and passing generational wealth, while utilizing it during our lifetime, with Infinite Banking