The Multifamily Wealth Podcast #65: Another Deep Dive on Multifamily Underwriting and How it's Changed in 2021 with Nathan Cloud
In this episode, I bring back Nathan Cloud from Cloud Capital. I first spoke with Nathan in the summer of 2020 and our conversation was packed with actionable tips/insights, so much so that I had to have him back on to continue the conversation. In the previous episode with Nathan, we dove deep into the underwriting process and in today’s episode, we dive even deeper and discuss numerous topics that you can apply to your business as it relates to underwriting.
We talk about high-level processes, how to fundamentally approach underwriting, and how the market has changed since the last time we spoke. Nathan shares how he aggregates data to underwrite more precisely, along with how to make accurate assumptions when underwriting a deal. If you are looking to dial in your underwriting process, this episode will surely provide you with the information you need to more accurately predict investor returns. Towards the end of the episode, we also touch on how Nathan is finding off-market deals at this point in the market. This is one of those episodes that will change your approach and will help you when underwriting future deals.
Struggling to find good multifamily deals? Looking to close deals with less of your own money? Want to operate like the pros and maximize the cash flow of your assets? Join The Multifamily Wealth Community, where we help multifamily investors start, build, and scale their businesses… specifically, those looking to grow from 1-10 units to 250+ units.
Are you looking to invest in real estate but don't want to deal with the hassle of finding great deals, signing on debt, and managing tenants? Aligned Real Estate Partners partners with passive investors looking for the returns, stability, and tax benefits investing in real estate offers, but not the work - join our investor club to be notified of future investment opportunities.
Show Notes:
5:15 Nathan shares his background, what he is currently up to, and what his business looks like currently.
7:54 Nathan discusses how his underwriting has changed in the past 3-6 months as a result of what is happening in the market right now.
14:10 Nathan talks about some of the data points that he looks to take away from underwriting his previous deals.
22:25 We discuss how you can set yourself apart as a buyer in today’s hot market, as well as the importance of accurate underwriting.
26:50 Nathan shares some of the key assumptions and drivers of a deal when underwriting effectively to accurately predict investor returns.
31:43 Nathan talks about how he finds off-market deals and the main deal flow strategies he sticks to that have given him success.
35:52 Nathan shares a piece of advice he would give himself before starting his real estate career.
37:15 Nathan discusses his most significant business-related failure or mistake and what he learned from it.
38:26 Nathan shares one skill/trait that he attributes his success to.
39:28 Nathan talks about his short-term goals for his business over the next 6-12 months.
CONNECT WITH NATHAN
Connect with Axel:
Follow him on Instagram
Connect with him on Linkedin
Learn more about Aligned Real Estate Partners