The 3 Underwriting Assumptions Multifamily Investors CAN'T Get Wrong

#246: The 3 Underwriting Assumptions Multifamily Investors CAN'T Get Wrong
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Are you making these three critical mistakes in multifamily underwriting? Find out how small tweaks in assumptions can turn a bad deal into a good one on paper. In this episode, we dive into the big three assumptions that can make or break a multifamily investment.
We explore the impact of rent growth, exit cap rates, and projected rents on projected returns in multifamily underwriting. Discover how slight adjustments in these assumptions can significantly alter the perceived viability of a deal. Learn why getting these three assumptions right is crucial for both LPs and sponsors in the multifamily space.
Key points covered in this episode:
- The compounding effect of rent growth over the hold period
- Manipulating exit cap rates to influence terminal property value
- The critical role of projected rents in determining NOI and overall returns
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