MIM Vol 1 Q1 2019 VERSION 00 FEB 8 FINAL


In every issue of Multifamily Insight, it is our goal to deliver new knowledge followed by confirming best practices in property acquisitions and operations and deliver at least one topic that makes you think outside of the box.

VOL Vol 11 Q1 2019

Multifamily MULTIFAMILY Insight IN- Magazine

5 Multifamily Rental Revenue

Growth Strategies

Multifamily Finance:

Is it Still a Great Time to

Be a Borrower?




in 100 Words

Vol 1 Q1 2019



eBook: 25 Biggest

Mistakes Real

Estate Buyers Make

AI Driven Real Estate


An Interview with

Marc Ruzten of Enodo Inc.

5 Multifamily Rental Revenue

Growth Strategies

Multifamily Finance: Is it still a

Great Time to be a Borrower?

Editorial: I am Jamal


Editorial: I am Jamal Khashoggi


Multifamily insight Magazine

From the Editor

In this edition of Multifamily Insight Magazine...

John Wilhoit

In this, edition of Multifamily

Insight Magazine,

we present an extended

conversation with Marc

Ruzten of Enodo Inc.

Marc has worked tirelessly

towards finding

solutions and “cracking

the code” within multifamily

valuation and investing.

David Garfinkel of Northmarq

writes about the

current state of commercial

mortgage financing.

In every issue it is our

objective to deliver new

knowledge, followed by

confirming best practices

and deliver at least

one topic that makes

you think.

If you have a

product or service

related to the multifamily

industry you

believe is of interest

to our readers please

reach out.





What’s Inside



AI Driven Real Estate Underwriting.

An Interview with Marc Ruzten

How do you compete for deals against big companies?

By leveling the playing field with technology.

5 Multifamily Rental Revenue

Growth Strategies

Year-over-year rent growth is the most important

driver of revenue growth. How do you get it?

Multifamily Financing: Is it Still a Great

Time to be a Borrower?

All of our capital sources are lending, and that is

a good thing.


Editorial: I am Jamal Khashoggi

Mr. Khashoggi and I have much in common...



4 AI Driven Real Estate Undewriting 14

An Interview with Marc Rutzen

10 5 Multifamily Rental Revenue


Growth Stratetgies

12 Multifamily Financing: Is it Still a Great 17

Time to be a Borrower

Smart Property Mgt in 100 Words

In this issue: Programmable Thermostats.

Editorial: I am Jamal Khashoggi

Book Deal with Free Shipping

Get two books, Multifamily Insight Vol I & II


AI Driven Real Estate Underwriting

Artificial Intelligence (AI) Driven Real Estate Underwriting with Marc Rutzen

My guest is Marc

Rutzen. Marc

is the CEO and

co-founder of Enodo


Enodo is an automated

analysis platform

for multifamily real

estate. Our discussion

is on the use of

artificial intelligence

(AI) in real estate


How does an

individual investor or

mid-sized operator

compete for deals

against big companies?

By levelling

the playing field with

the use of technology

that allows real

estate investors to

see and use the best

and most current


Enodo Inc. offers one

such solution that is

cost effective and

races past the fluffit

delves directly into

the core financial

concepts an investor

needs to have for

making investment

decisions in real


Marc directs the

development of the

platform including

user interface and

research & development

for new

product features on

the platform. Marc

is a licensed broker.

He has a Master of

Science Degree in

Real Estate Development

from Columbia

University. Welcome



I think AI (Artificial Intelligence)

is something that

everyone is familiar with.

What they are not familiar

with is that AI is having an

impact on real estate and

particularly multifamily.

What can you share with us

about that?

Marc Rutzen: To give some

context, people tend to

conflate real estate data

and data analysis and AI and

they’ll call it CRE tech. Over

the past 20 years there has

been a renaissance in real

estate data; twenty years

ago you didn’t have data.

There was no transparency

into transactions. You didn’t

know who owners were

easily. You didn’t know what

property trading prices.

There was no Costar,

Axiometrics, Real Capital

Analytics. These platforms

have brought data to the

fore and made it more

transparent so we know

what’s going on in the market.

The problem today is that

there is just so much to

analyze that no one person

can make sense of all the

data. Analyst pay for data

sources and then devote

further resources to confirm

the data is accurate, trying

to analyze it, make sense

of it and then fill a narrative

for a particular asset.

What I see AI doing and

what Enodo is trying to do,

our mission; is to quantify

the drivers of real value.

Not just provide more data

to analyze but tell you what

that means in terms of

investment potential. I see

a lot of disruptive potential

not just from our company

but a lot of companies in

the space that are pushing

for the adoption of AI and

it’s getting some traction.

What Enodo is trying to do,

our mission; is to quantify

the drivers of real value.

John Wilhoit: What I like

about Enodo as a user is

that it’s built for real estate

professionals and more

specifically for multifamily

which is my area of expertise.

Marc, you say that

Enodo automates the underwriting

platform for the

multifamily industry. Talk to

us about that.

Marc Rutzen: Think about

what you go through on a

typical deal analysis. If it’s a

marketed deal you’re going

to have a rent roll and T12

to analyze. You’re going to

look at the market for your

comps (comparable assets)

and you’re going to compare

rents to your comps

and see if what they’re

achieving is reasonable.

Enodo automates the underwriting

platform for the

multifamily industry

You’re going to put

everything into your underwriting

template and put

in your deal assumptions.

Then export everything

into a finalized product and

then use this to indicate to

an analyst or your superior

to do the deal or not do

the deal. In the case where

you’re the owner underwriting

the deal; you are pursuing

the transaction to syndicate

equity for the deal and

get financing from a lender.

What our platform enables

you to do, I know this is important

to you John, with

your writings about rent roll

analysis, we have a rent roll

parser on our site that free

right now. You can load any

rent roll. This will work with

most property management

software. Export your rent

roll from property management

software and load a

POD into Enodo. This will

parse floor plans, percent of

market rent achieved by inplace

leases and lease turnover

exposure (when leases

will expire). It will take out

cost-to-lease so you can

see what the effective rent

is. All of this happens in a

few seconds. That is something

that helps you to tee

up the data and not waste

time manually parsing the

rent roll.

John Wilhoit: What you’re

saying is that utilizing the

Enodo platform compresses

the amount of time required

to perform underwriting?

Marc Rutzen: Yes. Absolutely.

It’s a huge time-saver.

Once you have uploaded

the rent roll and T12 into

the system you’re going

to be able to seamlessly

compare your rents with

the market and see if they

are reasonable and gain

some insight into if a deal

is performing as compared

to similar assets in terms of

year built, number of units

and location and see if your

operating expenses are in

line with the market. That’s

a quick way to use AI to

underwrite deals and assess

potential upside.

John Wilhoit: Split off for us

how to utilize Enodo from

an operator’s perspective

and then from a developer/

builder perspective.

Marc Rutzen: Say the

scenario is this: you have a

property built in the 1980s

that has not been renovated

and in need of some

TLC. You think that there’s

some potential upside if

you were to invest some

money in renovating units

and bringing them up to

market. What Enodo does

is enables you to see which

amenities (amenity by

amenity) are going to add

the biggest rent premium.

This folds in dirctly with

our mission: to quantify the

drivers of real estate value.

Part of that is delving into

determining the rent delivery

value of granite counter-tops

versus hardwood

floors. Asking the question:

what’s going to bring the

biggest impact on rents:

stainless steel appliances

versus a rooftop deck.

Which one will bring the

highest rent? Enodo does

that with each individual

amenity allowing you to

build your amenity package

in the platform and see how

it will perform if you were to

invest those dollars and do

those renovations.

John Wilhoit: That’s

from an acquisitions

perspective? If you’re looking

at it a deal that’s on

your plate for potential

acquisition, utilizing the

Enodo platform can help

you not only analyze the

deal but analyze where redevelopment

dollars should

go in the deal?

Marc Rutzen: Yes. If you

already own the property,

you can see, am I charging

the best possible rent,

am I optimizing my rent


for this asset based on

everything that’s going on

in the market? It doesn’t

have to be a value-add deal.

You could just look to see

if you’re in line with the

market and how you should

adjust your rents to maximize


John Wilhoit: Let’s talk

about a new development

deal, brand new coming out

of the ground. How does

Enodo assist with underwriting

that transaction?

Marc Rutzen: Enodo

is collecting data from

about two million properties

nationwide on a daily

basis. This data is coming

from Property Management

Software, property web

sites, user uploads of rent

rolls and T12s. What we’re

doing is building all the

components of real estate

value into our data. We assess

and quantify buildings

individually in each market

so that you can hypothetically

build a building from

the ground up having this

comparable data.

Enodo is collecting data

from about two million

properties nationwide on a

daily basis.

That new building is just

the sum of its parts; put in

the number of three bedroom

units and the square

footage of those units then

the number of bathrooms

in those units and continue

this for the entire unit mix

and you are building the

build-out virtually. Then add

amenities to each one of

those different floor plans.

Enodo allows you, as the

developer, to virtually build

out your amenity package

at the community level and

at the individual unit level.

Using Enodo, You Can buildout

a new development –


You can instantly see as

soon as you’ve crafted it

(and you can do all of this

in the platform) a virtual

model of the asset. You

see what rents the new development

it can generate

as if it were to exist today.

You see what the comps

are (the closest comps).

For comps, if you’re doing

development in the

suburbs if there’s no new

development near by the

Enodo platform will go to

the next similar suburb

to your building and find

comps. This way you always

have comparable properties

to compare.

And then finally the Enodo

platform will show you the

operation as stabilized. You

can then represent to a

lender or an investor this is

what stabilized operations

look like were the asset


John Wilhoit: Tell me how

artificial intelligence is

assisting in making better

decisions about those

structures that you just


Marc Rutzen: On our

platform, type in an address

for your new development.

You’re able to see, if you’re

crafting a new development

from the ground up,

average square footage for

units of each type in the

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market and what frequency

of properties have different

amenities. For example, I

go into a market and I can

see that ninety percent

of buildings in this market

have a pool that means I

need a pool or I’m not going

to be competitive. And

then in Enodo you can click

on that amenity and see

what you’re going to get

in terms of rent for that

particular amenity. What’s

great is sorting by the

most frequent amenities

in the market. You could

sort by the highest premium

and craft your amenities

packages to select

the highest premium and

the most frequently listed


John Wilhoit: The “AI” part

is having all of that on one

page at one time?

Marc Rutzen: Yes. The “AI”

is being able to individually

quantify what the variables

are doing. Otherwise you

can’t do it. You know that

Building A has X Y and Z

and Building B has X Y Z and

one generates more income

but you don’t know exactly

why. The AI analyses a

hundred different variables

recognizing walk-ability

in one location is slightly

higher and the median

income slightly higher than

a similar location. Therefore,

even with similar amenities

one location is going to

have a higher premium than

another similar location.

John Wilhoit: So, with

Enodo I can look at comps

and review the amenities in

each of those comps

determine which ones are

adding the most value?

Marc Rutzen: Exactly.

John Wilhoit: This tells

me that Enodo is amenities-centric

and it allows

me to add value based

on what’s occurring in a

particular market and not

the market in general is that


Marc Rutzen: Correct.

John Wilhoit: Tell us the

difference between AI and

machine learning. What’s

the difference between

those two?

Marc Rutzen: There is

no difference. Machine

Learning is AI when you’re

training a model. What is

commonly understood to

be AI is a little bit different

when you’re talking about

it from a non-data science


John Wilhoit: For users of

the platform they represent

the same thing?

Marc Rutzen: In terms of

what they see in the platform

it represents the exact

same thing. The only difference

is that in AI the way

people see, the way people

view AI, the machine takes

data and determines exactly

what to do with it and that

result is the output. I’s very

nebulous and frightening,

right? You don’t know what

it’s doing exactly. But the

way we craft these models

is we select the features.

Because we’ve surveyed

hundreds of real people we

know which variables are


Then, we feed those variables

into our model.

We control the range of

influence that variables can

have so we don’t get anything

crazy excluding things

like seeing a rent premium

because it rains slightly less

in one area. If you just fed

variables randomly into a

model you could come up

with some weird stuff like

that. We put a lot of human

intelligence into our model

on the front end so that

you don’t get crazy results.

John Wilhoit: Tell us

more about how Enodo

provides locational characteristics

and demographic

characteristics. How can

users of the Enodo platform

implement this information

into their decision-making


Marc Rutzen: What our

platform does is it takes

median income, population

density, average family size,

the proportion of one-beds,

two-beds, three-beds in

the market, the walk score,

transit access and negative

externalities - all the things

that real estate people

intuitively know have an

impact. If you were to put

all this data into an excel

sheet and try to tell me

the impact of each variable

it would be impossible.

There’s is not enough datayou

can’t fit enough data

into Excel. What the Enodo

platform does is quantify

each variable. Then it tells

you if you land on a place

on the map the market is

contributing this much (X

dollars). Thus, anything

you do to this property the

market is

contributing exactly this

much. In other words, just

being in this area generates

X dollars towards rents.

The Enodo platform

quantifies each variable

As you look at the different

amenities and add them to

your virtual model, each

one is a component and

tells you what it adds to

rents. The amenities package

is going to be the sum

of the parts from the community

and from the unit

level. Our data scientists

are looking to bring into the

platform a tool that allows

our customers to click on

a map and see what the

key drivers of value are

in a market. Imagine being

able to see that an area has

an 80% college educated

population and median

income of $110,000 a

year- that’s what’s driving

value the most. You know

in this area that’s what’s

driving value the most. So,

it doesn’t matter if you do

anything else. It’s that kind

of insight that helps people

craft your plan for an asset,

your plan for an investment

to maximize value.

John Wilhoit: We’ve spent

a lot of time talking about

the income side. How

does a developer or an

analyst review the operating

expense side of a deal using


Marc Rutzen: On the

operating expense side,

what we do, we pull in data

from all the T12s that

are uploaded from users

(anonymously of course).

We’re taking that data and

keying it into a location





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and then loading it into the

algorithm to train. We’ve

loaded 3900 CMBS (Commercial

Mortgage Backed

Securities) deals nationwide.

These are CMBS deals

that are not distressed. We

control for those that have

too low of an DSCR (Debt

Service Coverage Ratio)

or had notes on the deal

that it was under water.

We use CMBS data and we

use benchmark data from

NAA (National Association

of Apartments and IREM -

Institute of Real Estate Management.

We also have partnerships

with several lenders that

contribute T12 operating

statements from closed

transactions nationwide. We

feed all this data in and we

control for each variable

the same way we do on the

income side; we do this on

the expense side. We control

for each variable and

determine, based on the

number of units, the year

build, the market, net rentable

square footage and income

profile for this property,

those being the biggest

drivers, that you should

be at this level for salaries

and personnel or that you

should be at this amount

per unit to budget for insurance,

taxes et cetera. We

calculate that as a series of

market benchmarks and

then compare the outcomes

to your uploaded T12.

This calculation compares

your T12 to market benchmarks

delivering actionable

information about your

property and if it is in line

with the market in terms of

each individual line item.

John Wilhoit: When you say

“market” what do you mean

by that?

Marc Rutzen: One of

the things that Enodo

has created is an algorithm

that will dynamically

pull in census tracts that

are similar in terms of

supply and demand fundamentals;

similar types of

properties and percentages

of different unit types and

rent that they’re achieving

and similar types of people

seeking those assets.

What we do is dynamically

build a market area instead

of drawing a rectangle or

circle or some oblong shape

to statistically determine

what your effective market

area is by bringing in adjacent

census tracks until

we’ve got enough data to

analyze statistics.

Going into an urban area the

“market” could be as small

as a few blocks. Going into

a suburban area the market

could be wide yet still

represents your effective

market area with just less


John Wilhoit: We understand

that markets are

not round or square. Markets

are certainly property

specific. I think what

they’ve done within this

product can outline competitive

market areas versus

something that is often

esoteric. Marc, you don’t

use the term sub-market?

Marc Rutzen: Yeah, we don’t

use the term sub-market

because what is equivalent

in size to a sub-market is

determined algorithmically.

John Wilhoit: And that offends

the senses for those

of us that have been working

in sub-markets for years

and years. That’s all we

know, right? We know that

we like this sub-market and

we don’t like that sub-market.

What you’re doing with

AI is redrawing those lines

where the sub-markets are

more distinctive around a

specific asset or group of

assets versus that oblong

or square or circle that you

were talking about earlier.

That does throw people I

think, originally, to be able

to look at the outputs from

Enodo and see something

different than sub-markets.

Your response to that is?

Marc Rutzen: Our response

is to ask how is the

sub-market determined?

What data went into that

sub-market and is it continually

updating and refining?

If you look at community

areas within the city they

were drawn decades ago

and they don’t change.

Does that neighborhood

represent the people in that

neighborhood and the properties

in that neighborhood

or have those boundaries

changed? That’s why we’ve

built an algorithm that’s

dynamic that will show, at

any given point in time, the

most relevant competitive

market area. And that may

offend the senses but you

want the best answer- you

don’t want the answer

that’s most comfortable.

John Wilhoit: Which is why

we’re talking about artificial

intelligence driven


decisions versus things that

are based on what might

have been in a textbook

from 1982.

Marc Rutzen: Exactly.

John Wilhoit: There’s

always somebody that

wants to know how you

come up with that number,

right? My question to you

Marc is about Enodo Rents.

How did you come up with

that number and how do we

know it’s a number we can

rely on?

Marc Rutzen: The way we

get to Enodo Rents is by

utilizing both in-place and

advertised rents. This is

after removing outliers- so

we don’t take anything like

six month leases or something

that’s going to be

artificially high. We train on

that data alongside all the

demographic and economic

and local demand drivers.

We will calculate what we’ll

get (what rents will be) if

you were to take this unit

in this building to market

today. What are you going

to be able to get for it?

The market rent that you

see in rent rolls is not necessarily

appropriate market

rents to use. The trends in

the market when analyzed

by AI can inform you as to

where rents are going and

where the optimal price

point is more so than just

looking at the operations of

your own asset. You have a

look at the entirety of market

and what’s going on to

determine where to price

your units.

John Wilhoit: That’s

right. And that’s where

I come in with my book

Rent Roll Triangle: The Ultimate

Rental Property Grading

System because you’re

not just looking at what’s

on the rent roll. There’s

always going to be a disparity

between gross potential

rent, effective rent, stated

lease rents (what’s in the

lease document) and collections.

So, there’s four different

price points none of

which necessarily tells you

effective rents on a given

day until you analyze what

those differentials are and

see where you should be

from a market rate perspective.

Marc Rutzen: Right.

John Wilhoit: Back to Enodo


Marc Rutzen: Enodo rent is

not biased. There’s no bias

from the property managers

saying I’ll never hit

those numbers or someone

saying we’ve got to keep

rents artificially low to keep

occupancy high. There’s

no human bias whatsoever.

We’re just looking at pure

data in the market and

determining what your price

(rental pricing) should be.

You may have different

opinions about it and in

some cases, there may not

be enough data in the market

and Enodo rent may

not be the right one to use-

I’m not going to say it’s

perfect. But in a lot of cases

you’d be surprised. You

look at the Enodo prediction

of rent and you compare it

to what you think the rent

should be and there could

be a pretty sizable Delta.

Then maybe you might

want to reconsider, wait a

second, can I raise rents

for this unit type and if I

do you I’ll make some more

money on the deal, right?

So, that’s what Enodo Rent

is there to provide; that

market context and the

upside or downside potential

for an asset.

John Wilhoit: It’s good to

have a target, and more

than one to compare, so

that when we go out into

the marketplace we’re

not relying on just what’s

in advertised rental rates

because that doesn’t tell us

anything about discounts

or concessions. Enodo

Rent takes that into consideration

and tells you, or

shares with you, what a unit

should be renting for net of

concessions. Is that a fair


Marc Rutzen: Absolutely.

John Wilhoit: There have

been times when two

months free rent was

not uncommon in metro

Houston, Texas. So, that

doesn’t necessarily tell you

what stuff rents for, right?

If there’s nothing sharing

with you, the buyer or the

operator, that a market is

offering two months free

rent as the norm to get

occupancy anywhere near

normalization. Enodo Rents

takes that factor into consideration

and tells you

what the rents are versus

what some conflated or

inflated number is that may

or may not be real.

Marc Rutzen: Yep. That’s

the beauty of it.

John Wilhoit: This article

is a transcrbed from a live

recording and podcast with

Marc Rutzen about

Artificial Intelligence Driven

Real Estate Underwriting.

We’ve been talking with

Marc Rutzen of Enodo Inc.

Use the discount code:

MIM_50 to try out the


Give it a try. Marc loves

feedback. Hit them up on

the Enodo Inc. web site

with any questions that

you have. They’re always

improving the product. I

endorse Enodo and I think

they’re building a great

system. I think it’s got legs

and a great future. Hopefully

you’ll take the time

to check them out and see

they are delivering on their


Marc Rutzen: We’re excited

to hear from your audience.

Tell us what you think.

We’re always improving as

John said. We look forward

to working with you.

To listen to the Podcast of this

interview Click Here.





5 Multifamily Rental Revenue

Growth Strategies

By John Wilhoit

Every operator wants rent growth. Rent growth, rent growth, rent growth. Year-over-year rent growth

is the most important driver of revenue growth. How do you get it? Like any business, multifamily requires

an action plan for growing revenue including multiple moving parts to gain traction towards to

goal. Following are five methods to get there faster. For more tips about multifamily operations and property

management read John Wilhoit’s book Multifamily Insight Vol 1 and Vol II.



Always at the top of the list. Nothing keeps

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changes in credit underwriting but not so much

as to bend past the point of reasonableness.

Today, with a full-employment economy and

historic low housing affordability, the renter

pool is robust. Even still - think long-term and

resist the tendency to accept below-standard

applications for the sake of a quick bump in percent

occupancy. Just like the fairy tale: the tortoise

tends to win the race.






If your other income revenue includes only application,

late and pet fees there is room for

expansion. Storage, services, cable revenue

sharing, RUBS (Renter Utility Billing Systems),

parking (premium parking spaces). Do some

brain storming to see what works best for your

assets. To learn more read this article at Multifamily

Insight: Property Management: What is

the Composition of Your Ancillary Income?




Are you offering existing customers an incentive

to bring in their friends and co-workers?

Resident referrals are a cost-effective method

to create an opportunity to have satisfied customers

introduce your property to new customers.

Consider the positive financial impact

of just one referral a month at each property

under management - convert this to dollars and

you can see why this should be implemented

across all of your ;assets under management.

Read: Multifamily Apartment Marketing: 21

Leasng Touch Points.




Do you email your customers and potential customers?

Oh no! Not another task! Like with

this blog, we try to keep in regular contact with

our readers via email. An email as often as only

once a month can assist in maintaining name

recognition. It’s just one more place to keep

your name in front of your customers. That’s

why Nike pays to have their “swoosh” on every

high-profile athlete possible. Multifamily Insight

uses, and highly recommends: Aweber Email

Management System.


Multifamily Insight Magazine

Multifamily Financing: Is it Still a

Great Time to be a Borrower?

By David Garfinkel

I wrote a similar article in 2012

titled “It’s a great time to be a


Is this how you choose a

real estate investment?

Maybe there’s a better way.

Learn how experienced investors evaluate

rental property investments. No hype, no

motivational cheerleading, no upsells –

just a straightforward, comprehensive

series of video lessons that teach you the

formulas, metrics and techniques.

Click to learn more.

The 10-Year US Treasury

was at a 60-year

historic low, hovering

around 1.40%. Today, the

10-year Treasury is now at

2.65%. Here is part of what I

wrote then:

“The big question is when

are interest rates going up?

Since we are at historic lows,

there is a lot of speculation

that interest rats will rise.

But when? Once must assume

that eventually, rates will

start to climb, and then the

next question is where will

they stop?”

Well, rates are up, but where

will they stop? (rates jumped

after the 2016 election). The

bigger question may be, is

it still a good time to be a

borrower? I’d say

the answer is yes. Life

Insurance Companies are

currently lending; Fannie

Mae, Freddie Mac and

HUD are still aggressively

lending on multi-family,

and the CMBS is market is

back (Commercial Mortgage

Backed Securities, also

known as Conduit loans).

Life Insurance Company

rates can be had somewhere

around 4.25% – 4.75% fixed

for 10-years. Freddie and

Fannie have 10-year rates

around 4.75%, with HUD

rates around 4.50% fixed

for 35-years (plus Mortgage

Insurance Premium, also

known as MIP). CMBS

rates can be had for around

5.25% – 5.50% fixed for


10-years. These assumptions

are based on fuller

leverage. Historically, these

are still great rates!

All our capital sources are

lending, and that is a good

thing. Fannie/Freddie and

HUD are lending to historic


The fact that CMBS is back

is a good thing, as this has

opened a new channel of

capital into the marketplace.

CMBS is lending on all

property types and still has

attractive debt. The hope is

that these lenders can pickup

loans that a Life company

may not bid as aggressively

for, including loans where

leverage needs to be pushed

or in markets that aren’t

major metropolitan areas.

It is crucial to note that

the fundamentals of

underwriting are still very

important. Lenders aren’t

pushing leverage. They

are evaluating each loan as

it relates to location, lease

rollover, borrower strength

and many other factors for

making a real estate loan.

But if the fundamentals

work, then you should be

able to take advantage of

still very attractive longterm

rates. It is still a great

time to be a borrower. John

Wilhoit’s book about rent

roll analysis - How to

Read a Rent Roll: A Guide

to Understanding Rental

Income is a great place to

learn about the fundamentals

of lender underwriting.

David Garfinkel is an

employee of NorthMarq

Capital. His views and

opinions expressed in this

article are his alone and

do not represent the official

views of the company.

David can be reached at








In Every Issue! 100 Words to make you a better Property Manager.

Wi-Fi programmable thermostats are creating

thousands of dollars in savings for property owners

every day. They can be accessed from your

on-site or central property management office to

reflect real time needs at the property level. Snow

coming? You can make sure each vacant unit has

heat set correctly to avoid costly repairs from

freezing pipes. Summer showings only in the afternoon?

Program vacant units to cool from 12-5

only. Start with installing them at turnover and

expand over time. A simple cost/benefit analysis

should reflect a payback of less one year. That’s

smart property management! Read John Wilhoit’s

book How to Read a Rent Roll to learn professional

rent roll analysis..


Cash Buyer

Major U.S. Markets

100+ Units


John Wilhoit on Real Estate Podcast

Understanding Leverage &

Liquidity in Real Estate Investing

Click to Listen

How to Read a rent roll - Do you know

all the elements of a rent roll? This

book is exclusively for people serious

about buying rental income property.

Rent roll analysis validates contractual rental

revenue; it’s is up to you to get this right.

Buying rental property is not an impulse purchase.

As a rental property buyer, you need

to know how to build, understand and use

the rent roll to your advantage.

This book is a technical guide to rent roll

analysis. The objective is to narrow your

attention to one thing and one thing only:

estimating the validity of contractual rental

revenue collected from rental income property.

Why is this important? Because getting

it wrong undermines the goal of estimating

Net Operating Income (NOI) accurately.


Multifamily Insight Magazine

I am Jamal


“ ”


Mr. Khashoggi shared this bias; that truth is worth sharing.

Mr. Khashoggi and I have much in common.

Predominantly, we are both

passionate about writing. If the two

of us were awkwardly introduced in a social

setting, once it’s established we are

both writers the perfunctory news-weather-sports

conversation is dismissed in exchange

for the common ground of sharing

stories that may have some small impact on

the world at large.

We might have discussed

wine, where to

find the most comfortable

shirts or how long

we can get away with

“not shaving”. Our

worlds diverge there; I

was born and raised in a

country where the right

to free speech is protected.

Mr. Khashoggi

was not. My constitutional

right to say

and write what I want


is universal within the

borders of my country.

Mr. Khashoggi’s was

not. Rudi Keller writes

a column entitled Rude

Awakenings. From a

recent article:

…The only bias I have

ever found that is universal

among good journalists

is a bias in favor

of the truth.

Mr. Khashoggi shared

this bias; that truth

is worth sharing. His

views so angered leaders

in the country of

his birth that an elaborate

plan to silence his

voice was planned and

executed resulting in

his death. I am Jamal

Khashoggi because I

too believe that truth is

worth sharing.

The United States attempts

to export to the

world the concept that

people should have the

right to express their

political and personal

opinions without fear

of governmental reprisal.

Alas, this is not a

universal truth accepted

by all. In the middle

east and China, the

right to free speech is

far from universally accepted.

If anything, it

is occasionally tolerated

but usually quashed.

The United States attempts to export to the

world the concept that people should have

the right to express their political and personal

opinions without fear of governmental


I am Jamal Khashoggi because we shared

the belief that truth shared is a positive


It matters not if you

agree with my truth; we

believe that we have

the right to express it.

I am Jamal Khashoggi

because I believe in free


The purveyors or his

death, by smashing the

stone, have broken it

into a thousand pieces

each with a new story

to tell, a new truth to


On the home page of

the Washington Post

you’ll see the tag line

“Democracy Dies in


Thank you, Mr.

Khashoggi, for bringing

light to darkness, for

advancing democracy,

for standing in for truth,

for binding tyranny with

bold action with your

voice and with your





I am Jamal Khashoggi

because we shared the

belief that truth shared

is a positive event.


Multifamily Insight Magazine

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Cash Buyer

Major U.S. Markets

100+ Units


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