Underwriting is such an essential part of any real estate deal. Effective underwriting can be a tool to find deals that may seem insane at first glance but are actually once-in-a-lifetime opportunities. In today’s #Highlights episode, we share our conversations again with real estate entrepreneurs Walker Meadows and Mason Moreland. They give valuable tips on how to underwrite a deal like an expert.
Watch the episode here:
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Walker shares their pre-underwriting work and insights into the underwriting process itself. Meanwhile, Mason shares tips on how he underwrites using Excel and his answers highlight the need for quality over quantity and the power of YouTube learning. Click the play button now!
Key Points From This Episode:
- An inside look at the process leading up to the underwriting and the underwriting itself.
- Some of the ways mobile home parks are underwritten differently from typical multifamily deals.
- What lending terms for mobile home parks typically look like.
- Mason’s process for underwriting a project and establishing a business’s life cycle.
- What Mason does to determine what his risks are for any given project.
- Creating a strong syndication group by recruiting talent and people with resources.
- Improving your business by having your team always look for weaknesses.
- Using Excel and why YouTube is a fantastic learning tool.
“The quicker you can get to a no-deal is just as effective. It’s just as important as getting to yes, because you only have so many hours in a day and you need to be able to filter down to the high-priority deals.” – Walker Meadows
“We got to be hyper-selective on the front end, which was a learning curve for me. I felt like we were leaving a lot of meat on the bone.” – Walker Meadows
“Because every second that you spend mulling over some deal that ain’t going to work for you anyway is a second you could’ve spent evaluating a deal that is going to work for you.” – Walker Meadows
“The first thing I start out with is I literally pull up a blank spreadsheet and I just do a brainstorm, you know? Even a notepad. You got to think about the main things, right? You got to think about where’s your income coming from. What’s the timing of the income? How does the income change year over year, month over month? What’s the variability in it? What are the risks there? Financing is huge, right?” – Mason Moreland
“Once you build your own model, you’ll start to see by just playing with different variables, going up and down, you’re going to see what moves them the most, on the margins particularly, the timing of your revenue and things like that.” nth over a month? What’s the variability in it? What are the risks there? Financing is huge, right?” – Mason Moreland
“If you want to succeed at something like we’re doing where it’s at scale, it’s mechanized, it’s just huge. You really got to bring the missing parts altogether, you can’t have good business sense and no talent to grow grapes, and you can’t have poor business sense and amazing talent and a vineyard, you got to bring all the things together, I think that’s what we’ve done in our business.” – Mason Moreland
Links Mentioned in Today’s Episode:
About Walker Meadows
Walker Meadows lives in Atlanta, Georgia where he’s most recently worked in Pricing Strategy for a Fortune 500 electric utility. In the past, he’s flipped multiple single-family houses, founded and managed a successful education company, and held a variety of engineering, finance, and account management roles within the pharmaceutical and utility industries. He has a degree in Mechanical Engineering from the University of Georgia, and an MBA from Georgia College & State University. He is currently pursuing a Master of Data Analytics degree from the Georgia Institute of Technology. Walker is co-founder of the Invest Now Atlanta real estate meet-up and teaches weekly personal finance classes at Atlanta City of Refuge.
About Mason Moreland
Mason is a wildlife biologist by training. His passion for finding solutions led him from negotiating the needs of endangered species and landowners to ferreting out real estate deals by finding solutions to complex problems. He started doing live-in fix-and-flips and now has experience in single-family, multifamily, and agricultural real estate.
His passion is still problem-solving as he finds untapped investment opportunities in unique niches by trying to discover the solution for every “no” that underwriting presents. His biggest business accomplishment is putting together a partnership that has grown into one of the largest wine grape vineyards in Texas (Canted County Vineyards), with no prior experience in the beverage industry.
His biggest life accomplishments are being a father to two girls and husband to a brilliant woman. In his free time, he backpacks and hunts in the Rocky Mountains and is an advocate for wildlife, sportsmen, and wild public lands.
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