Multifamily investors, where do you go learn how to do analysis?
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[{"id": "fuq9mh7", "text": "bigger pocket analysis tool", "replies": [], "depth": 1}, {"id": "fuqagsg", "text": "The school of \u201coh fuck what did I do?\u201d was the school I went to. Seem to have worked out the hiccups after a few years.", "replies": [{"id": "fuqun7p", "text": "All jokes aside, I have found this usually is the way to go. It might fuck you in the beginning, but you learn a lot with the negative experiences and know how to deal with them in the future when they arise again.", "replies": [{"id": "fuquum8", "text": "I finished my first deal. Pro forma had me making x and I ended up making around 5% of x. I was bitching to someone and they said \u201chahah you expected to make money on your first deal?! Be glad your tuition payment wasn\u2019t too big, I lost 40k on my first deal.\u201d", "replies": [{"id": "fuquzry", "text": "Similar situation here, ended up paying $21,000 in repairs on the first deal. Fortunately we got lucky in the location and tenants, so we actually did fine. Good learning experience though. Best way to start is to just go with the flow and learn from your mistakes.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fuqatfo", "text": "Nah dude don\u2019t let \u201cnumbers\u201d and \u201cfinance\u201d get in the way of your real estate investing", "replies": [{"id": "fuqbhx1", "text": "Negative cash flow? What's that?", "replies": [{"id": "fuqk32h", "text": "lol", "replies": [], "depth": 3}], "depth": 2}, {"id": "fuqk2p1", "text": "lol", "replies": [], "depth": 2}, {"id": "fuqoxn1", "text": "Pro-tip: if you pronounce it fun-nahnce you'll get instant recognition as a professional and your returns will increase 5%.", "replies": [], "depth": 2}, {"id": "fuslq5x", "text": "I once had a leasing rep on an office building tell me he didn't liked getting bogged down in numbers and that some good deals don't make sense on paper. He was proposing deals with negative effective rents.", "replies": [{"id": "fut2h9d", "text": "You have to optimize your mindset and shift your paradigm (pronounced paradigem)", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fuqd1k1", "text": "Learn yourself. It is much faster, cheaper, and ultimately the best way to learn all of the nuances of analysis. How important is it to understand the finances / numbers behind your investments? Um....plainly, it's the most important. In fact, its the only thing that really matters - and thus drives decision making.  EVERY. SINGLE. THING. can impact your investment underwriting so you better know exactly what the fuck you're doing / estimating / reserving so that you don't completely screw yourself, your project, your returns, your relationships with investors, and your chance of every doing deals /raising money again in the future. Remember that models are simply models, they are not reality, you can underwrite anything and make it look good (to a degree), but if it doesn't inform you as to HOW you ACTUALLY operate the real estate. So you need to know the finances well, every number in your modeling needs to be scrubbed. Models have to be well detailed and conservative for that matter. (under promise, over deliver). \n\nAs far as resources go I would start here &amp; keep a list of questions going while your watch it / read it. \n\nhttps://www.adventuresincre.com/watch-build-multifamily-real-estate-model/", "replies": [], "depth": 1}, {"id": "fuqj6tk", "text": "You can learn for free online with certain sites and YouTube.    If you want something more \"official\" then take the first CCIM class:  CI101.  Here is a link if I am allowed:  https://www.ccim.com/education/course/ci101-financial-analysis/\n\nThis covers all of CRE with a focus on all the financial stuff.  It's not cheap but a great class", "replies": [], "depth": 1}, {"id": "fuqjuss", "text": "Investment bank training program.", "replies": [], "depth": 1}, {"id": "fuqr6tq", "text": "Buy some books and read them 10 times", "replies": [], "depth": 1}, {"id": "fur91a4", "text": "Given your questions I think you would be better of starting with a single family rental.", "replies": [], "depth": 1}, {"id": "furio55", "text": "My advice would be to buy older edition college textbooks for finance (basics of discounted cash flows/NPV/IRR if you don\u2019t already have this background), financial modeling, and commercial real estate. The basics don\u2019t change so this will give you a good base to build on and use for reference. \n\nMy undergraduate degree is a BBA and my major was real estate for reference. The books we used between classes didn\u2019t have much difference in content, only what we studied out of each.", "replies": [], "depth": 1}, {"id": "fus02kx", "text": "If you\u2019ve got enough for the down payment on a commercial loan then forget dealing with single family and go straight to multi family. The numbers often make multi family deals easier to scale than single family. \n\nAs for where to learn, every market is different. Sometimes your local Real Estate Investment Club will have members that will guide you through what a successful deal looks like in that area. That\u2019s the best place to learn. \n\nIn theory, regardless of where you are, the cash flow minus expenses should be positive. Or you expect it will be positive after renovations. Then there\u2019s the value add to the property you plan on doing, which is a different consideration than cash flow. \n\nEveryone invests for different reasons. Some for asset appreciation, some for cash flow, some for depreciation, some for tax benefits. Depending on what you\u2019re looking to get from the investment you\u2019ll look at the numbers differently.", "replies": [], "depth": 1}, {"id": "fut77lh", "text": "It depends is this for a multifamily project in Chaz?", "replies": [], "depth": 1}]