E136: The Secrets to Successful Underwriting - Danny Randazzo

This week our special guest is the coveted underwriter Danny Randazzo! Join us as we discuss how to increase your returns with great underwriting. Danny is a real estate investor, author, entrepreneur, mastermind host, national speaker, podcast host, volunteer with The First Tee and world traveler. He retired from corporate America at age 30 after working as a financial consultant for over half a decade and building a real estate portfolio that generates monthly income to achieve financial freedom.   Today his company controls over $220,000,000 in real estate assets. When Danny is not investing in real estate you can find him walking with his wife Caitlin and dog George or playing competitive golf. Understanding the underwriting and analyzing of multifamily apartment deals is vital to a successful return on your investment. If you're a seasoned pro or just getting into investing, then this is a topic you simply can't ignore or ever have enough knowledge on.   So join the conversation as we dive deep into this complex topic and provide you with free professional knowledge that you can use to nail this subject and become a successful investor.     KEY TAKEAWAYS 1. The basic philosophy of investing: 1. Preserve capital and 2. Buy cash flow producing assets for long term gain.  2. When finding a deal look at the market itself and identify the fundamentals that you want from that specific market.  3. Some key fundamentals to look for in a good deal are: 1. Location 2. The business plan 3. The economic growth of the investment area 4. Seller performance  5. Occupancy 6. Income 7. Expenses  4. At this moment in time be conversative with your cost reduction estimates and general underwriting  5. How to judge a market´s future performance: Look at market rent performance and sub market fundamentals reports that are available via brokers. This can tell you what rents will be like and what rental increases there are.  6. Always have an underwriter on your team who can verify all the data and financials when analyzing a market or property.  7. Stress test the deal. Look at return metrics like: vacancy & occupancy numbers, interest rate, expenses and exit cap.  8. You could be saving money on the performance of your property by reducing costs on administrative expenses such as internet, cable and phone packages.  9. You don't have to know a mentor to benefit from their teachings or knowledge. Take and create your own inspiration.    BOOKS First a Dream - Jim Clayton https://www.amazon.com/First-Dream-Jim-Clayton/dp/0972638903    LINKS https://dannyrandazzo.com/ https://www.instagram.com/danny.randazzo/ https://www.facebook.com/dannyrandazzo/ https://twitter.com/dannyrandazzo https://www.linkedin.com/in/danny-randazzo-61126449/ Join InvestorMindset.com for more!