The seller's expenses
Taxes reset after the sale, insurance gets repriced for the new owner, and the owner's unpaid labor leaves with the owner. Very little of the seller's T12 carries over to you.
INDUSTRIES · MULTIFAMILY
Apartment deals get underwritten on the seller's numbers. Lenders and LPs check them against the market.
For syndicators, funds and first-time sponsors buying apartment buildings, who need a model that holds up in front of an investment committee, a lender and the LPs reading the deck.
Where these deals go wrong
The rent roll and the OM don't match
The offering memorandum tells the story the seller wants told. The rent roll shows what tenants actually pay, who is behind, and which concessions are buried.
The renovation premium
The premium quoted for fully renovated units gets applied to every unit, and the plan assumes units turn faster than leases and notice periods allow.
Sizing the loan on one test
Lenders run coverage, debt yield and loan to value and lend against whichever comes back lowest. A model that runs only one overstates the loan and the refinance.
Services for multifamily
ALL SERVICES →Deal Review
A written verdict on a live deal.
Acquisition Underwriting
A full model built from your source documents, plus the live Excel file.
Independent Underwriting Review
A fresh underwriting from the source documents, compared line by line against yours.
Due Diligence Support
Leases abstracted, census and payer mix tested, trailing financials rebuilt, expenses repriced.
Waterfall and Structure Modeling
Promote, pref, and refi sized against real lender constraints.
Offering Memorandum and Investor Presentation
Built by the person who built the model, so every number ties.
Case studies
ALL CASE STUDIES →MULTIFAMILY
Rebuilding the Underwriting
The model showed a 15.4% return, but four assumptions that each looked reasonable on their own were all leaning the same direction, and once they were rebuilt the deal came in at 5.1%.
Read the case study →RECAPITALIZATION
A Refi That Couldn't Be Sized
Investors were told they'd get almost half their capital back in year three, but the refinance was sized in a way no lender would size it, and the partnership agreement quietly decided who absorbed the difference.
Read the case study →Common questions
What do you need to review an apartment deal?
The rent roll, the seller's trailing twelve months of income and expenses, and the offering memorandum. If you have a lender quote or an insurance quote, send those too.
Can you review a model someone else built?
Yes. I rebuild it from the source documents without looking at the original, then compare the two line by line so you can see which assumptions are carrying the return.
Do you work with first-time sponsors?
Yes. A first deal is usually where the gap between the model and the building is widest, and where lenders and LPs look hardest.
How fast is it?
A Deal Review comes back within two business days. A full acquisition model usually takes five to seven business days, depending on how clean the source documents are.
Latest multifamily articles
ALL MULTIFAMILY ARTICLES →How Independent Living Gets Underwritten Differently Than Multifamily
A community full of apartments can still be an operating business, and the underwriting, the lender, and the risks all follow from that.
Read it →What a Rent Roll Tells You That the OM Does Not
The offering memorandum tells the story the seller wants told, and the rent roll is where that story gets checked.
Read it →Multifamily Operating Expenses per Unit: Price Them at Market, Not What the Seller Paid
The seller's expenses reflect the seller's taxes, insurance, and habits, and none of those come with the building.
Read it →Value-Add Renovation Premium: What to Do When Renovated Units Won't Rent Higher
A value-add plan only creates value if renovated units rent for enough more to pay back the work, and the market sets that number, not the pro forma.
Read it →