How can mastering the art of underwriting multifamily deals transform your Real Estate Investing journey and help you make informed decisions?

In this insightful episode, Victoria McGuire shares her expertise in multifamily real estate investing, particularly focusing on the crucial skill of underwriting. With a background in residential real estate, Victoria and her husband embarked on their multifamily journey to scale their investments and work together. She emphasizes the importance of thorough research, verifying information, and diving deep into rent roll analysis when evaluating potential deals. Victoria also discusses the competitive nature of the current market, the states and markets she prefers to invest in, and the significance of vetting sponsors when considering passive investing opportunities. Throughout the episode, she provides valuable tips and insights for both active and passive investors looking to navigate the multifamily real estate space successfully.

Victoria McGuire is a real estate investor based in St Petersburg, Florida. She and her husband, Marv, started building their real estate portfolio in the early 2000s before pivoting to larger investments and founding Heartsill Capital Partners. Now they partner with well-established operators on larger multifamily deals to help everyday people accelerate their financial freedom and generate Legacy-building wealth. Victoria and her husband specifically target investments in Florida, Georgia, South Carolina, and Texas.

[00:00:00] – [00:04:00] From Residential Realtor to Multifamily Investor: Victoria’s Journey

•  Victoria’s background in residential real estate and her transition to multifamily investing
•  The challenges and rewards of managing Airbnb properties compared to long-term rentals
•  The importance of finding the right underwriting model and becoming comfortable with the numbers

[00:04:00] – [00:10:00] Mastering the Art of Underwriting: Tips and Techniques

•  The significance of verifying information and not relying solely on offering memorandums
•  Analyzing T12s for patterns, anomalies, and one-time expenses
•  Understanding the legal aspects of billing back utilities to tenants

[00:10:00] – [00:18:00] Navigating the Competitive Multifamily Market

• The importance of explaining your underwriting when presenting offers to sellers
• Preferred states and markets for investing, considering factors like landlord-friendly laws and demographics
• Vetting sponsors and asking the right questions when considering passive investing opportunities

[00:18:00] – [00:22:00] The Evolution of Multifamily Investing: Adapting to Market Changes

• The time-consuming nature of residential real estate compared to the flexibility of multifamily investing
• The process of underwriting deals and the importance of a quick underwriting tool
• Sellers’ growing acceptance of the new market reality and the narrowing spread between realistic and desired prices

[00:22:00] – [00:26:00] Mitigating Risk and Making Informed Decisions

• The preference for agency debt over bridge debt to avoid refinancing pressure and market uncertainties
• The importance of under-promising and over-delivering when syndicating deals
•  Knowing when to walk away from a deal and having a clear top price during negotiations

Quotes:

“Properties that are in good markets are still getting, you know, multiple offers. They’re calling for highest and best on most of them.” – Victoria McGuire

“If you’re looking at passive investing, you want to vet who you’re investing with. So if you’re going to invest in a deal as an LP, don’t be afraid to ask a lot of questions.” – Victoria McGuire

Connect with Victoria:

Website: https://heartsillcapitalpartners.com/

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Sujata Shyam Passive Income Expert

Suja Shyam is a real estate investor, underwriter, Short-Term rental operator, and Fund Manager. Since founding Luxe, her primary focus has always been helping others achieve their financial & life goals.

Suja’s desire to help people started at a young age and continued through the years as she graduated from Northwestern University, and the Carnegie Mellon Tepper School of Business.

After using her student loans to flip her first house during her MBA, she spent 4 years underwriting multifamily acquisitions for institutional buyers.

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By way of bootstrapping her Short-Term Rental Business, and getting her hands dirty, Suja replaced her corporate income at the age of 33.

As a Managing Partner of Luxe Capital, Suja is responsible for acquisitions, fund management, and investor relations.

Integrity, exceptional communication, and delivering results to investors are at the core of every decision she makes.

When Suja isn't touring properties, or underwriting deals, you can find her rollerskating with her friends or exploring an unknown corner of the world.