How InvestAssist Streamlines Real Estate Investment Analysis

In this video, we will demonstrate how InvestAssist simplifies the complex process of analyzing and managing real estate investments. With just a few clicks, you can access comprehensive data insights, helping you make informed decisions faster and with greater accuracy.

Case Study: Morgans Landing Apartment Deal

This is the Morgans Landing apartment deal that we will be structuring within our syndicator model. The property is a 350-unit apartment complex located in La Porte, Texas. Built in 2021, the sponsor acquired the project directly from the developer for $73.25 million with an earnest money deposit of approximately $1.5 million.

Financing Details

• Loan-to-Cost (LTC): 67%
• Loan Amount: Approximately $49 million
• Interest Rate: Fixed at 4.8% over a 10-year term
• Amortization Schedule: 30 years
• Closing Date: December 2022

Equity and Partnership Structure

• 80% of the equity raised from investors
• Remaining amount contributed by the sponsor
• Partnership: 80% share for limited partners (LP) and 20% share for general partners (GP)
• Preferred Return: 6%
• Profit Sharing:
  • 100% of cash flows to investors until a 6% IRR is achieved
  • 70% to LP and 30% to GP until an 18% IRR is reached
  • 50% to LP and 50% to GP after an 18% IRR is reached
• Asset Management Fee: 2% on revenues

Underwriting the Deal

We will now use this information to underwrite the deal and assess the returns investors are receiving from the property and the profit they are making. We will utilize the rent roll and trailing 12 statement documents to underwrite this deal on the InvestAssist platform.

Steps to Underwrite the Deal

1. Log in to the InvestAssist platform.
2. Click the "Add Deal" button located in the top right corner.
3. Search for a property by entering its name or address.
4. Provide details about the property:
   • 350 units
   • Purchase price: $73.25 million
   • Year built: 2021
5. Save the deal to create it.
6. Upload and validate the data from the rent roll and trailing 12 documents by clicking and browsing the respective buttons provided in the app.

Validating Rent Roll Data

Once the documents are processed, we can begin validating the data:

1. Click "Review and Validate".
2. Verify that the rent roll data has been successfully extracted and standardized.
3. Compare the extracted data with the original document to ensure accuracy.
4. Complete configurations, starting with charge codes and occupancy codes.
5. Address floor plan details, including bed and bath information.
6. Generate a summary of charge codes and floor plans to match totals with the original document.
7. Mark the data as validated once all information is verified.

Validating Trailing 12 Statement Data

Next, we move on to the trailing 12 statement:

1. Process the statement on the platform.
2. Delete unnecessary columns.
3. Verify categorization of line items (income, expenses, capital expenses).
4. Correct any miscategorized items (e.g., NOI and NCF).
5. Ensure the totals match the original document.
6. Mark the data as validated once all information is verified.

Generating the Model

After validating both documents, we transition to the assumptions section:

1. Update assumptions based on underwriting notes.
2. Create multiple sets of assumptions for various scenarios.
3. Generate the model by selecting the files and clicking the "Generate Model" button.
4. Download and open the model in Excel, where all data will be populated in the right place.

Thank you for watching.