How to Underwrite a Multi Family Real Estate Deal

How to Underwrite a Multi Family Real Estate Deal

When deciding on a property to acquire, it’s important to have a set of criteria to make sure you’re making the best possible investment.  We use multiple real estate platforms to find, analyze, and select deals in the most efficient manner. We underwrite and analyze hundreds of deals every year to ensure we only buy the best properties for our intended goals.

Magna Vita Investments has developed solid benchmarks and parameters in the real estate industry. Below are just some of the acquisition criteria used to ensure we only move forward on the best deals:

  • The gross rent multiplier needs to be less than a certain number
  • Purchase price needs to be at a certain amount compared to the replacement cost 
  • Population growth needs to be at a certain percentage
  • The cap rate needs to fall into a certain range
  • Only buying in two classes of properties
  • Purchasing under the ask price by a certain amount
  • Certain ROI percentages need to be met
  • Crime Rate
  • Income
  • Creating specific tenants
  • Renter profiles
  • Property management compensation needs to stay under a certain percentage
  • Investing in only specific neighborhoods of the country
  • Using different purchasing strategies for specific times in the real estate market cycle
  • Only selecting markets with certain job diversity

A quality system will produce quality results and that’s what we have built. The actual metrics that correspond to each one of these criteria is proprietary. Once you have partnered with us on a deal, we will lay out all the details of these criteria as they relate to the chosen property.

Just like we have criteria for property, we also have criteria for our potential partners. We choose who we do business with and who we share our intellectual property with. Being a part of this opportunity is exclusive. It is not offered to just anyone.

There is much more investor money available in the market place right now than there are good deals, so we are able to carefully choose who is selected to proceed with us.

If you would like to be considered for this partnership, click the link below and submit your info:

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