You know that answering these questions will take you hours — but you can’t afford to spend several hours analyzing every deal you get. You need to be able to do it in 10 minutes or less. The more deals you can analyze quickly, the more likely you’ll find the deal that will work for you.
When I first got started, I created my own spreadsheet, but it took me four hours to analyze a deal to calculate my maximum purchase price. I even bought some analysis software but I couldn’t customize them to suit my needs. It was holding back my ability to analyze lots of deals quickly. And I knew I had to look at a 100 deals before I would find the one that worked!
The Syndicated Deal Analyzer has helped me reduce my analysis from 4 hours to just a few minutes so that I can come back with an acceptable offer price. It lets you analyze more deals in a shorter period of time. This allows you to quickly dismiss the deals that won’t work and find the deals that will.
Since the asking price of most buildings don’t meet our buying criteria, it’s not enough to say “this deal won’t work for me.” You need to be able to get back to the seller and be able to say “this deal won’t work for me because XYZ, but it would work at this price, and here’s how I came up with that number.”
This immediately starts the negotiation process, lets you test the seller’s motivation, and gets you closer to your next deal. You’ve probably seen a bunch of other calculators, but here are three reasons why the Syndicated Deal Analyzer is different (and better!):
My passion is being an entrepreneur and helping others become (better) entrepreneurs. My focus is buying apartment buildings by raising money from private individuals. I’ve been investing in residential and multifamily real estate since 2005 and began syndicating deals in 2010.
I helped start a software company that eventually went public. I have flipped houses, own commercial real estate and operate pizza restaurants. I enjoy starting and growing companies, I love making sense of chaos and taking calculated risks. I especially enjoy the “art of the deal”: raising private money and putting deals together. I enjoy in equal measure teaching. I have taught computer science courses, financial literacy classes to adults and children, and courses on how to buy apartment buildings.
Because of my experiences as an entrepreneur in different businesses, I feel I can help others gain the knowledge and confidence to take the first steps as an entrepreneur, or to become better at what you’re already doing as an entrepreneur.
This short video gives you a tour of the Syndicated Deal Analyzer by walking you through the analysis of a deal from start to finish.
In this video, I’ll show you how to answer the question “what is the MOST I can pay for this apartment building deal?” The Syndicated Deal Analyzer lets you do this quickly so that you’re not spending hours analyzing a deal. This lets you quickly get back to the broker or seller with something like “this deal doesn’t quite work for me, and here’s why”. As you’re looking for other apartment buildings to buy, you can’t afford to spend hours analyzing each deal. Even in this phase, the Syndicated Deal Analyzer incorporates different investor scenarios into the analysis.
In this video we’ll talk about what kind of returns investors look for and different ways to structure the deal. We’ll then use the Syndicated Deal Analyzer to look at the effect of the investor returns on our deal analysis. Quickly being able to incorporate your investors into the analysis is key when buying apartment buildings with private investors.
Learn how you can pay yourself when you’re syndicating an apartment building deal. Use the Syndicated Deal Analyzer to quickly see the effect of paying yourself at different points of the transaction on the financial model.
In this video, we’ll use the Syndicated Deal Analyzer to look at different scenarios side by side. Look at the numbers as reported by the seller next to “your version of the truth”. For example, if the seller-reported expenses are only 30% of income, what would be the value of the building with more realistic expenses of 45%? This part of the analysis is critical when negotiating the maximum price you’re willing to pay.
Learn how to fine tune the projections with your particular business plan. Perhaps the vacancies and expenses are high, or rents are below market. If you could raise rents by 20% and lower expenses by 15% over the next 3 years, what impact would that have on your projections and your investors’ returns? This part of the Syndicated Deal Analyzer lets you answer those questions quickly.
The Syndicated Deal Analyzer quickly estimates your closing costs using rules of thumbs. As you progress through due diligence, you’re able to override some of these values so that your estimates become more and more accurate. Due diligence expenses and closing costs are often over-looked by real estate investors, and estimating them quickly and accurately are key for investing in apartment buildings.
What produces the best return? A sale in Year 4 or 7? What if you refinance after the third year and hold for the next 7 years? I’ll show you how to model different scenarios so that you can determine which one produces the highest returns for you and your investors.
In this video, we put it all together! We’ll review the deal as we’ve analyzed it so far, including what we’re paying ourselves and what our investors’ projected returns are. When we’re all done, we’ll use the Syndicated Deal Analyzer to produce a Deal… Read more…