EP 98: Underwriting King Shares His Secrets to Conquering $400MM in Multifamily with Rob Beardsley
Are you interested in multifamily investing? In this episode of the podcast, we sit down with the Underwriting King, Rob Beardsley to discuss his underwriting secrets to conquering $400MM in the multifamily industry. Rob shares his experience with his first deal - a $20 million multifamily project in Houston, Texas - and emphasizes the importance of capital raising and investor relations. He also provides valuable insights on the challenges of raising money without a track record and how it gets easier over time.
Rob discusses higher debt interest rates and how they impact return expectations and pricing, as well as how he communicates a pause or a capital call to his investors if needed. We also learn about the benefits of focusing on one market, becoming vertically integrated, and having an in-house property management team. Rob also shares his affordable housing strategy. This episode is packed with valuable information for anyone interested in multifamily investing. Don't miss it!
💥💥 Remember, this is your MBA. Have a notepad handy, and get ready to take some 📝 notes!
Key Points from This Episode:
Rob’s first deal: A $20 million multifamily project in Houston, Texas.
Do not underestimate capital raising.
Investor relations are the most important thing in the business.
Raising money without a track record is tough, but it only gets easier.
In hindsight of 2020, Rob identified what he considered a mistake in terms of investing.
What caused a 75% decline in year-over-year transaction activity in the latter part of 2022?
Higher debt interest rates require either lower return expectations from the buyer or a price reduction from the seller.
How does Rob communicate a pause or a capital call to his investors?
Why focusing on one market has been a very big key to their strategy.
The pros of having an in-house property management team.
Rob’s motivation and view on growth.
How Rob met his business partner.
Rob’s affordable housing strategy.
Tweetables:
“When you can master the underwriting process, you will conquer the real estate business.” -Tejas Gosai
“You learn the most when you take outside capital.” -Rob Beardsley
“This (real estate) is a slow-moving business where you don't necessarily have a track record in a day or six months or even a year. It takes years to build a track record.” -Rob Beardsley
“Having a perfect record is super hard. And you have to take risks in your business and you mitigate those risks. And you tell investors about that. And that's how you get to the next projects.” -Tejas Gosai
“One of the keys to actually scaling and raising more money is being vertically integrated.” -Rob Beardsley
Resources
Structuring and Raising Debt & Equity for Real Estate
About Rob Beardsley
Rob oversees acquisitions and capital markets for Lone Star Capital and has acquired over $365M of multifamily real estate. He has evaluated thousands of opportunities using proprietary underwriting models and published the number one book on multifamily underwriting, The Definitive Guide to Underwriting Multifamily Acquisitions. He has written over 50 articles about underwriting, deal structures, and capital markets and hosts the Capital Spotlight podcast, which is focused on interviewing institutional investors.
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The education we provide is sponsored by Lehigh Valley Fund. The fund earns returns through real estate investing and pays inventors an average 10% return with a 12 - 18% target*
Click here to book Fund Manager Tejas Gosai.
Contact Jerna Bentilanon to schedule a visit to our offices or a tour of one of our properties: j.b@lvpefund.com, 610-230-7777
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