📣HELLO EVERYONE! Jerome Maldonado here, we just wanted to inform you that we are growing a new IG account. The other account (and the biggest channel we had) was hacked and deleted last December 31st. We want to build it from the ground in 90 days, so I'd love to see you and talk to all of you interested in getting started in Real Estate RIGHT THERE!🏘💯 ⚡Follow us here ➡ jeromem.com/Instagram

Most underrated channel on KZread...

@jeromemaldonado

Жыл бұрын

Thank you

Jerome this 3 part series is golden. I'm in the beginning of analyzing 10 acres zoned for 82 unit new construction. I have talked to the bank for debt and capital equity fund underwriter. Have the broker researching land development and met the architect who is also on the city zoning board. I'm going to need more of your expertise and experience because this is beginning to roll.

@jeromemaldonado

Жыл бұрын

Jerome, you should set up a call with me or my team. There’s a lot of moving parts to these but they are extremely viable financially. www.eliterealestatesociety.com/homebuildingyt?sl=jerome

Man. I'm gonna have to watch this video 100 times. The underwriting process for these big development deals is pretty heavy on the fine details, but at the same time I'm starting to understand how you can apply a "stock" formula to each deal that will make it simpler. Right now I just scout deals for established developers but this will help me learn how to do it myself.

@jeromemaldonado

3 ай бұрын

It’s your time bro

This is a great series. Thank you!

Appreciate the vid, you should make a video like this underwriting a new construction home within the 500k-800k range

@jeromemaldonado

Жыл бұрын

Hey brother, we have multiple videos underwriting single-family house bills between $500,000 and $800,000. It’s our business model on the single-family sector. Just search up on the KZread channel. We documented the whole entire process from start to finish on a new build.

Replay. This is Gold. Thanks Jerome. Victor Da Connector (Balderas)

Mind blowing Jerome, can we replicate these kind of idea in Canada. I might be sounding dumb but your reply is highly appreciated.

@jeromemaldonado

9 ай бұрын

Yes, it just depends on lending parameters

Real teacher👏🏾🤝🏾💪🏾

@jeromemaldonado

Жыл бұрын

Best in the Biz bro 👊💪🏽

1 problem I'm not understanding is that when you get stabilized and cash out refinance 45m worth of debt. Unless you can access money for under 5% (P&I) or get interest only debt, your debt service is more than your NOI. The banks will required you to have a minimum of 1.2 DSCR correct? I'm still just a poor boy who has to take bank debt at current rates and there is noway that deal cashflows for me.

@jeromemaldonado

Жыл бұрын

There’s a little bit more to it than that but it’s a great start in the direction you’re thinking. Banks right now or only lending about 70% loan to value at stabilization for even experienced investors. Valuation to drop the little bits of times have changed slightly from one year ago. Learn the underwriting game inside and out and it will keep you fluid forever

Great presentation

So the only thing I don't get is how are you getting the 4m for the land ? are you giving the investors a debt or equity stake in the project?

A bit confused in regards to construction loans. If you have build cost at $35MM, what makes the bank give 90% LTV at "retail" when they initially said 75%-80% LTC? 19:00-20:30 for reference

@jeromemaldonado

Жыл бұрын

The banks won’t give you 90%. They will give you 70 to 80% loan to cost.

@dansaunders4597

Жыл бұрын

Addison you’re right it’s LTC they lend on not LTV. Not sure why he’s saying he can get an LTV loan at 75-80%

Do you raise all the money to run the construction, if yes what percentage do you raise or how much do you allocate to run construction and holding cost?

@jeromemaldonado

Жыл бұрын

We only raise money on the land. We get institutional money on the Build. Sometimes what is a tiny bit of capital for interest reserve

Grest teaching! Jani'ce from Indianapolis

@jeromemaldonado

Жыл бұрын

👊😍🙏🏼

Hey Jerome I love the knowledge you provide!!! I have two questions or at least one question and another clarification. 1. You said there is complex math or understanding behind calculating of the LTC retail the banks will generically loan up to and that amount is roughly around the 90% LTV. So for this project that's 54mm and the bank would loan between 70-80% of that being around 37mm to 43mm, which would should cover full LTC wholesale which it does in this case. Am I understanding that Correctly? Do you ask your contractors for a wholesale budget and retail budget? 2. Second question is the refi out portion to cash flow 750k per year. Your cap is 5% which is 3mm a year, but if your refi is 75% LTV which is roughly 45mm which would be 270,000 a month with terms 30 year amortization at 6% which would be 3,250,000 how does that work? or do apartment loans differ? Thanks again for the in-valuable knowledge, Amandip (AJ) Singh

@jeromemaldonado

Жыл бұрын

Amandip great questions Please schedule a call with me Info@jeromemaldonado.com

@Just_DT_

Жыл бұрын

Love the content as well and I’m curious to hear the answer to this second question also. AJ did you gain any clarity or Jerome would you be willing to speak and provide some insight? Thanks again for the knowledge! Great stuff! Do you teach multifamily development in your course as well?

You're a wizard ✨️

Hey there! How do you valuate a piece of raw land that has civil engineering approvals for a MF development ??? Thanks !

@jeromemaldonado

4 ай бұрын

I’ll based on price per unit underwriting on stabilized value. Use a solid current proformas

@23bushman23

4 ай бұрын

Ok thank you for replying

Beautiful 🎉 nice pricing, whats up.

Sick series. The return on capital invested is insane. Dad got to partner on something similar few years back. You almost mentioned it but i never hear about it on social media and that is the tax credit money if you can qualify for it. Is there anyway i can add value to you? Love to get more involved.

If you get an investment loan of $40m (75% of LTV) interest will be $3.15 @7% quoted and on an GROSS income of $3m ??????? Thats before capital reductions on the loan or the deduction of management costs, maintenance or voids from the income. LTV is not the only test banks do, repayment ability is another one which is also stress tested, a standard test being reducing the income by 20% and still be capable of covering interest. If you get a development loan 80% LTC on a spend of $35m you have to show the bank your 20% in cash of $7m, often it has to go in 1st after which the bank will cover 100% of the spend.

I watched this one 4x in a row. Victor Da Connector (Balderas)

@jeromemaldonado

Жыл бұрын

We’re looking at your Landale touch base with us this week

Can we get a copy of the worksheet??

where can we get the proforma template ?

@jeromemaldonado

3 ай бұрын

From property Managment companies on your market or from large Multifamily brokers

@keatonenglish

2 ай бұрын

@@jeromemaldonado do you have one you can share?

Since you had 19 million in equity does the bank not require you to have a down payment of 15-20% on the 40 million it costs to build? That’s the only part I’m confused about

@jeromemaldonado

5 ай бұрын

100% correct when you have that much equity you down payment is your equity

24:40 - Don't you have to pay extra interest also, if you estimate too much, for covering Yield Maintenance and PPP?

@jeromemaldonado

9 ай бұрын

We always take that service into account and we underwrite for it. There’s three parts to this video. I can’t remember which series we go over the debt service on the underwriting, but in one of the three series we talk about budgeting and allocation for debt service.

What about minimum DSCR requirement for loan and cash to close to needed for down payment?

@jeromemaldonado

Жыл бұрын

Great question. There’s a lot of moving parts to these. Do you have ownership or have you been a partner on any multifamily development projects thus far? If you have questions or need assistance, you’re welcome to schedule a call with me on my team. www.eliterealestatesociety.com/homebuildingyt?sl=jerome

Coach,🙏🏾

Is the appraiser going to give you a 5% cap rate when you go to refinance every time on new construction or is it 7-8%

@jeromemaldonado

10 ай бұрын

The banks indicate the rate, and the appraiser indicates the value based on current market. Cap rates where similar products are being traded at the current time that you seek lending an appraised value from the appraiser.

@bigbosscarries5288

10 ай бұрын

Thanks for the help jerome you have taught me so much I am underwriting a 180 unit development in North Florida at the moment and the deal actually makes sense with a decent upside at a 5 or 6 cap. I want to do a bridge to hud 221d4 40 year ammortization loan.

Jerome, I have a question on the fifth way you mentioned where you depreciate the entire property 100% over 5 years. Is that called bonus depreciation? If not what’s it called and is there any caveats to that? Also is that the same rule that they’re phasing out by 2027? So here in 2023 would be 80% and 20% less each year until it reaches 0?

@jeromemaldonado

Жыл бұрын

It is called cost segregation. Bonus depreciation was implemented a few years ago by the Trump administration. Great appreciate in segments very similar to as you listed above. They did extend the bonus depreciation. But traditionally call segregation can be done on the dwelling itself but not the land. Land cannot be depreciated and normal depreciation without bonus depreciation is taken over the course of five years or over the course of the ownership of the property.

@AMBASSADOREnriquezFamilyNation

10 ай бұрын

Yea and some entire properties get depreciated EVERY 5 YEARS Until It has no life left. I know I am a 3 Unit Property but 100% of our value is taken by those that have all access to the value that we have lost. I quit accepting the pity benefits over 2 years ago when I accidently discovered fraud by "consultants/agents/contractors/bidders" and we are on Stand by awaiting the next storm. Classified Waste Zero Value. Worthless-(not really tho-we the GOLD MINE & ive shut down the mines and creating a really steep "fee schedule" for those that come to "manage Risks" while they laugh all the way to the bank. I dont even know where the bank is so I get to laugh all the way over here from the inside of the vault. Entertaining but as I Stand On ROCK SOLID GROUND the GOLD IS MULTIPLYING, and its only a matter of time before I break the Bank.....Id rather just go to the bank and collect the books and audit them, but you know how these banking wars go there is always silent in the street and everyone ghost until "blood sheds in the street" I guess that is what all the Trillionaires seek to find, the blood shed is where the money is. I dont know Im just depreciated property, like clock work every 5 years back to ground ZERO again....GROUNDHOG DAY.....lol shitz and Gigglez.

@AMBASSADOREnriquezFamilyNation

10 ай бұрын

ya ya i know I could do a status correction and give it a shot at doing my own administrative process, but the STAKES are TOO HIGH and Im a laughing STOCK that has a book value of a little over 58 billion ( view only rights-that i now longer have because I spoke on it out loud) There are too many Expert Contractors out there that are more experienced in these type of contracts so Ill just keep standing my ground expanding my path of discovering America for the 1st time lol the whole time and refuse to compromise or negotiate and deliberately refuse to perform with others that "depreciate" me and mines and let the STAKES keep on Stacking until the HOLDERS realize that the BANK IS GONNA BREAK AND START Presenting REAL OFFERS or until someone undertakes them and they no longer get to present OPTIONS at ALL TO ANYONE. STAY TUNED>>>>>

So the tax benefits are based on borrowing from the equity when refinancing? Not connected to 4 or 9% LIHTCs?

@jeromemaldonado

Жыл бұрын

There are several tax strategies, but the cost segregation comes from the depreciation of raw materials in the fix property. Land cannot be depreciated. A few moving pieces to the cost segregation process, but one of the most lucrative tax deferred strategies available.

Great

How many acres is the property?

@jeromemaldonado

Жыл бұрын

5

How many stories?

@jeromemaldonado

Жыл бұрын

4

Hi Jerome, amazing info, I have a question, I did not see the permit fees, can you elaborate on that? Thanks

@jeromemaldonado

Жыл бұрын

Permit fees are in the soft cost expenses!

Do you offer your spreadsheets for underwriting?

@jeromemaldonado

11 ай бұрын

Yes

How tall is Cody I'm 6"2 1/2 Chicano HE seems like 6"7

@jeromemaldonado

Жыл бұрын

Bro, he’s probably not taller than 6 foot 2” himself but stands super tall when he’s by a 5’ 4” rockstar like myself!!!

@ziggyc4474

Жыл бұрын

@@jeromemaldonado chingon yessir absolutely Al cien !!!

@ziggyc4474

Жыл бұрын

@@jeromemaldonado Jerome do you have a webpage on mentorship to get way great myself at subdividing?

How is the game changing with higher Interest rates ?

@jeromemaldonado

Жыл бұрын

Banking is a little bit tighter. The land prices are coming down. Rates are going up and values are dropping. Right now it’s time to get them out of the ground to stabilize the cash flow, and just a few years we’re going to have a heyday

@chrisvasquezshow

Жыл бұрын

@@jeromemaldonado I am currently working a 1 acre project in Pinal county AZ Im struggling to figure out what the unit value would be once completed

Mr. Jerome, I need to connect with you and learn from you the proper process.. I might get investor funds.. Well, What is the Monthly ROI on this investment and It will get better as loan paid off? 2nd How long it took, start to end ( Months)? Please let me know. Thanks for the Video.

@jeromemaldonado

Жыл бұрын

Love to help you. Loaded question and happy to help you run through the numbers. Contact me and my team and we can get you on a Strategy Call. Info@jeromemaldonado.com

Cap rates do not measure revenue. Cap rates measure VALUE. If a dollar of NOI sells for $10 that is a 10 cap. If it sells for $20 then it is a 5 cap. You are explaining this incorrectly.

@jeromemaldonado

Жыл бұрын

Cap rates measure, revenue and value. I think you’re a little confused as to how I’m explaining everything here. Explaining multiple ways you generate only value the revenue. Cash on cash return my friend.

@MrAzizisse

Жыл бұрын

@@jeromemaldonado how can i reach you to talk business ??

@cariocadobrasil7

Жыл бұрын

A cap rate is nothing more than NOI divided by property asset value and is expressed as a percentage.

@Walina-gv9ph

Жыл бұрын

@@cariocadobrasil7 And that percentage tells you the dollar amount that was paid for NOI in that closed transaction. V=i/r $10=$1/10% or say $20=$1/5% An investor never needs to try to calcuate a cap rate.

that math aint mathin my boy lol

Cory should just be quiet. He doesn’t help and always screws up the flow. Incredibly annoying.

@jeromemaldonado

Жыл бұрын

😂😂

Someone tell the camera guy to stop messing with the shot. Zoom it out to the board and leave it there! Come on noob! It’s making this impossible to watch!

@jeromemaldonado

Жыл бұрын

Lol I love it!

total bs