Rob Beardsley, a co-founder and principal of Lone Star Capital Group Inc., talks about his journey from a computer technology background into multifamily real estate. As a real estate syndicator, he has evaluated thousands of opportunities using proprietary underwriting models and has published over 50 articles in his newsletter about underwriting, deal structuring, and capital markets. In this podcast, he talks about what underwriting basically is, areas of consideration when evaluating deals, process of making an underwriting model, and the timeline for its execution. Discover the metrics that Rob uses when evaluating proprietary deals and how to determine the duration of a model. Learn the different types of loans and how that shapes business models and the risks that the Covid-19 pandemic brought to the market.
Important Points in This Episode:
- Rob’s transition from a computer technology background into multifamily real estate
- Background of Lone Star Capital Group Inc.
- Key areas investors should look for when evaluating deals
- Documents requested from the seller/broker to be able to create an evaluation
- Quantitative metrics used in creating underwriting models: Internal Rate Return vs. Cash-on-Cash
- Determining the duration of a model
- Long-term debt vs. bridge loans and how it shapes business models