SHOW NOTES
Are You Making These Key Underwriting Assumptions? Insights with Jonathan Nichols
Impressed by the financial potential of real estate investing and seeking a path to financial freedom? Discover the keys to successful underwriting and multifamily investing on this episode of Podcasts.
Jonathan Nichols, co-founder of Apogee Capital, joins Michael Blank to share his journey from engineering to real estate investing and the invaluable lessons he's learned along the way. Tune in to hear Jonathan's expert insights on underwriting, deal structuring, and avoiding common pitfalls in real estate investments.
Key Takeaways:
Jonathan's Transition to Real Estate Investing
– Desire for greater financial potential and time for family.
– Transition from single-family to multifamily investing for scalability.
– Successful property deals in Texas and Oklahoma.
Essential Underwriting Assumptions
– Importance of accurate assumptions: pro forma income, running costs, taxes, insurance, rent growth, and debt terms.
– Sources for data: market experience, brokers, data reports (Costar, yardy, Crexy), property managers, and comparables.
Deal Structuring Considerations
– Partnership splits, preferred returns, and legal documents.
– Aligning the business plan with loan terms and exit strategies.
Common Mistakes in Underwriting
– Incorrect assumptions and not modeling pro forma income over time.
– Impact of prepayment penalties on loan terms.
Jonathan's Professional Insights
– Value of progress over perfection.
– Drawing parallels between engineering and real estate investing.
– Emphasis on deal analysis and the importance of financial models like the syndicated deal analyzer.
Advice for Aspiring Investors
– Attend events and explore educational content for valuable insights.
– Importance of building a team and seeking mentorship.
– Opportunities for both active and passive involvement in real estate investments.
Ready to take the next step?
– Join Michael Blank's Apartments 101 Masterclass to learn strategic apartment investing and close your first deal with no money down in 180 days.
Listen in as Jonathan Nichols reflects on his career transition, shares crucial underwriting principles, and encourages listeners to achieve financial independence through informed real estate investments.
This episode is a goldmine of practical advice for anyone serious about real estate investment and achieving financial freedom. Tune in, take notes, and get ready to transform your investment strategy with insights from an experienced professional!
Connect with Jonathan Nichols
Connect with Michael Blank
Apartment Investor Network Facebook Group
Email [email protected]
Resources
Access Michael’s Apartments 101 Masterclass
Schedule a Call with Michael’s Team
Explore Michael’s Mentoring Program
Join the Nighthawk Equity Investor Club
Check Out Michael’s Deal Maker Blueprint
Enroll in Michael’s Deal Maker Mastermind
Review the Podcast on Apple Podcasts
Financial Freedom with Real Estate Investing by Michael Blank
