This is how education needs to be done. Steps 1,2,3 etc - showing real life examples. This is easily the best educational video on underwriting on BP. Bright girl with a bright future
I have a hard time believing you drive to every comp, I don’t believe home owners will allow you to come tour there house for comparable purposes without an offer. What’s up with this tip ? Cmon guys.
Great episode Chris, Terrance, and Alessandra. My favorite tactic from this episode is that you should go onto broker websites and practice underwriting their listed properties. I just started doing this and its helping me learn my market!
I would recommend learning to build one from scratch. I think it is very helpful for just understanding how the formulas work and also that allows you to add additional components to the spreadsheet. I am constantly improving my spreadsheet. If you google how to underwrite you will probably find a lot of people selling their courses for $20 or $50. Don't pay more than that for a spreadsheet. You can also find them for free
Great episode. This spreadsheet looks pretty well build. Is this something you created in house or you followed a template? Thanks for sharing your underwriting process.
Thanks for the video. A question from a rookie here: for SFH, underwriting is done by the lender. Is this not the case for multi-family? Or is the underwriting here just mean some due financial diligence as an investor?
Great content! Love the way Alessandra's mind works..very systematic approach and analytical, not emotional. Much like my mindset! Is there a software program you recommend for analysis, or do you have a spreadsheet resource? I have heard of Buildium, but not familiar with any others..
Would love to be able to use that same spreadsheet or program for evaluating and analyzing! Please let us know if it’s something that can be shared or downloaded. Thank you!
I'm confused about reviewing 30 deals before making an offer an then only getting 1 in 15 accepted. That is 450 potential properties. That seems like an insane number what is that including? all properties that come on the market?
Question: How do I reach out to professionals in Bigger Pockets for specific States or areas I'm looking to invest? I would like to do all these things, but where I'm at is running simple numbers and just watching this video alone, gives me the idea that all then numbers I have run so far are not enough.
Great show! Alessandra is definitely putting in the work! I have a very similar approach to underwriting but I learned how to do it by just taking action. I think that's the best thing anyone can do. Mistakes may be made along the way or missed opportunities, but it propels you forward!
@@LouBloom21655 You can reach out to the broker on the deal and they will provide you with the T-12, rent roll, and OM. After you underwrite and find a spot where the deal works, you can submit an LOI
Hold up, Alessandra is coming out with a book and she's only been doing this for a year and has less than 150 units? I have over 5 thousand and never even thought about writing a book? Where do people get the idea that they just become a guru for transacting on 2 or 3 deals?
To me it's arrogance. It's the unfortunate reality of today's generation, mind you I'm barely scratching 30 so I'm young too. But the entire social media celebrity culture is making everyone into empty and shallow pedestals. If I were to ever think about writing a book it would be after I've gone through a number of cycles in the market and own a few billion dollars in real estate and have gone through many ups and downs and have done it long enough to see everything clearly from a long term experience
@@choyayahyah Hey Charles. I am not coming out with a book.. I'm just here to provide some useful tips to get started in underwriting. Thanks for watching!
@@alessandrathompson5195 Hi Alessandra, that's fine and I'm not criticizing you nor would I criticize anyone who wants to write a book. I just may not agree with what you do but hey we live in a free country. I think you best stay humble and just focus on the building of your company and portfolio. I started with a 33 unit building a few years ago and am now over 5k units in just a bit over 4 years. Take or leave my advice, if you want to build a legacy and business you can be proud of, focus just on growing and being the best at what you do rather than everything else which is unrelated to your business at hand. Write a book after you have been around a number of years and have proven yourself, than you'll have real credibility and your book will be more genuine.
This is how education needs to be done. Steps 1,2,3 etc - showing real life examples. This is easily the best educational video on underwriting on BP. Bright girl with a bright future
Thank you! Alessandra is a sharp and is definitely going places.
Thank you, David!
This is such valuable information! I hope all newer investors watch this and bookmark it…great job!
could you attach the T12 she had? Would be great to have that to build my own
I have a hard time believing you drive to every comp, I don’t believe home owners will allow you to come tour there house for comparable purposes without an offer. What’s up with this tip ? Cmon guys.
That's what I was thinking
Still didn't talk about how she initially raised her down payment
Great episode Chris, Terrance, and Alessandra. My favorite tactic from this episode is that you should go onto broker websites and practice underwriting their listed properties. I just started doing this and its helping me learn my market!
is that underwriting spreadsheet available for download?
I would recommend learning to build one from scratch. I think it is very helpful for just understanding how the formulas work and also that allows you to add additional components to the spreadsheet. I am constantly improving my spreadsheet. If you google how to underwrite you will probably find a lot of people selling their courses for $20 or $50. Don't pay more than that for a spreadsheet. You can also find them for free
Thanks, you all are so amazin. Feels like I'm getting free lessons from Kobe Bryant but just in real estate
Love it!
Thank you Terrence and Chris!
Keep Rocking Alessandra!
Eat Drink and Sleep Real Estate.
Live It Love It cause its Awesome!
you're welcome!
Thank you!!
Great episode. This spreadsheet looks pretty well build. Is this something you created in house or you followed a template? Thanks for sharing your underwriting process.
Love this spreadsheet. How can I find one similar?
She is incredibly smart. Well done guys!
Thanks for the video. A question from a rookie here: for SFH, underwriting is done by the lender. Is this not the case for multi-family? Or is the underwriting here just mean some due financial diligence as an investor?
Finally, a step-by-step! Thank you for the information!
Some of the best and most informative real estate investment content out there, like usual Chris!
This is by far the best underwriting video I've seen on TH-cam thanks for this 🙌🏾🙏🏾
does anyone have any recommendations for books that will teach you this stuff?
Great content! Love the way Alessandra's mind works..very systematic approach and analytical, not emotional. Much like my mindset!
Is there a software program you recommend for analysis, or do you have a spreadsheet resource? I have heard of Buildium, but not familiar with any others..
How do you become apart of this training group?
Awesome interview and thank you to the Trio for sharing your expertise
Where do you get your spreadsheets?
Have you found it?
Very helpful info thank you 🤓
Thank you very much for sharing this VALUABLE information. Which mentorship programs would you recommend?
I don't have any specific programs to refer you to., Terrance and I have really focused on finding "organic" mentors - like what Alessandra has done.
@@BuildingWealthWithRealEstate thank you!!
7 Figure Multifamily is a great one!
@@alessandrathompson5195 thank you!!🙏
@@alessandrathompson5195 how can I connect with you personally aside from you tube
🙏🏾
Would love to be able to use that same spreadsheet or program for evaluating and analyzing! Please let us know if it’s something that can be shared or downloaded. Thank you!
Curious if that spread sheet was shared or if it can be downloaded somewhere
Great information!! Thank you so much.
Where can I buy this spreadsheet?
7:41: 4 people have to be able to call
Lender
Property manager
Insurance broker 2-3 bids
Call county to understand what the taxes are going to be
I want her booklet on underwriting
I'm confused about reviewing 30 deals before making an offer an then only getting 1 in 15 accepted. That is 450 potential properties. That seems like an insane number what is that including? all properties that come on the market?
She still a little green to play in this market and was a little off , but good luck hopefully they don't get hard money for this deal.
Question: How do I reach out to professionals in Bigger Pockets for specific States or areas I'm looking to invest?
I would like to do all these things, but where I'm at is running simple numbers and just watching this video alone, gives me the idea that all then numbers I have run so far are not enough.
Accounting tip: don't call your expense line payroll unless you are actually filing W-2s
But who can I trust to do the due diligence on my behalf? I'm looking at long distance investing.
Great info thanks guys
What kind of steps and what to look for when you are researching your market/area?
owesome Thank you for sharing people who give are allowe to recieve
Hi thank you so much! Where can I get the excel spreadsheet?
How much should you have to put on a multifamily that size? 20% down? In what form if so? Cash?
That is a very loaded question and depends on numerous variables. There is are a lot of creative solutions available.
@@BuildingWealthWithRealEstate I guess it would depend on the lender. I just need to start talking with some to see if it's a possibility for me.
Definitely speak to your lender and look into using the syndication model to finance the property!
Great video. But I wish it started by telling us what is underwriting
Good content
Thank you! Best way to get financials?
@ 12:57 Alessandra says the tenants are paying a flat fee of 75 where is she seeing that ?
It’s 🆙
🔥🔥🔥🔥🔥
I’d buy that book Alessandra lol let us know !
Is there a link to the spread sheet she was showing us?
Best explanation for rookie investors ever great job really appreciate it
Great show! Alessandra is definitely putting in the work! I have a very similar approach to underwriting but I learned how to do it by just taking action. I think that's the best thing anyone can do. Mistakes may be made along the way or missed opportunities, but it propels you forward!
How did you take action to raise capital? if you do raise. That is my biggest obstacle.
This is exactly what I needed. Many thanks!
What if the building is a new build and there is no rent or financial statements. What’s a way to get around that
You'd have to base your UW on comps and a pro forma from the operators.
❤
he needs to stop talking.
1. "Go straight to the financials" what does that mean?
Money baby what's happening with it on this unit. Rent roll, expenses, debt, etc.
Get the T12 and other supporting documents from the seller.
Do you get the t12 before writing a loi?
@@tanialeung1153 yes, what I was wondering how getting Financials is 1st?
@@LouBloom21655 You can reach out to the broker on the deal and they will provide you with the T-12, rent roll, and OM. After you underwrite and find a spot where the deal works, you can submit an LOI
How do I know which banks/lenders to call?
A mortgage broker in your area can be helpful since they have a pulse of multiple types of loans - they will help you hone in one your best options
Hold up, Alessandra is coming out with a book and she's only been doing this for a year and has less than 150 units? I have over 5 thousand and never even thought about writing a book? Where do people get the idea that they just become a guru for transacting on 2 or 3 deals?
Because selling the pickaxe can be more profitable than mining the gold.
To me it's arrogance. It's the unfortunate reality of today's generation, mind you I'm barely scratching 30 so I'm young too. But the entire social media celebrity culture is making everyone into empty and shallow pedestals. If I were to ever think about writing a book it would be after I've gone through a number of cycles in the market and own a few billion dollars in real estate and have gone through many ups and downs and have done it long enough to see everything clearly from a long term experience
@@choyayahyah Hey Charles. I am not coming out with a book.. I'm just here to provide some useful tips to get started in underwriting. Thanks for watching!
@@alessandrathompson5195 Hi Alessandra, that's fine and I'm not criticizing you nor would I criticize anyone who wants to write a book. I just may not agree with what you do but hey we live in a free country. I think you best stay humble and just focus on the building of your company and portfolio. I started with a 33 unit building a few years ago and am now over 5k units in just a bit over 4 years. Take or leave my advice, if you want to build a legacy and business you can be proud of, focus just on growing and being the best at what you do rather than everything else which is unrelated to your business at hand. Write a book after you have been around a number of years and have proven yourself, than you'll have real credibility and your book will be more genuine.
@@choyayahyah they said "you know so much you could write a book" "yeah maybe a little paperback" as jokes, she wasn't being serious
How does one pull up the T12 or go straight to the financials?
The seller supplies those documents.
Hey! You can reach out to the broker to provide the T-12 and rent roll. Make sure you're asking for the most recent one!
Love it
Amazing!
This is gold!