E120 How Do Experienced Investors Analyze Deals in Minutes?
REI Hot Seat with Andrew Hines and The Investments Group
Shownotes Transcript
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In E120 of REI Hot Seat, Andrew Hines is joined by Brad McCrae and Jacob Campagnaro to discuss a quick and efficient approach to analyzing multifamily real estate deals.
They highlight common pricing mistakes made by agents unfamiliar with multifamily properties and the "broken telephone effect," where misinformation about pricing becomes entrenched.
The conversation focuses on shortcut methods investors can use to determine if a property is worth a deeper financial analysis.
Key techniques include assessing dollar per door values, comparing rent-to-purchase price ratios, and recalculating cap rates using realistic expense estimates rather than trusting listing figures.
They also emphasize the importance of checking Google Street View to identify potential red flags in a property's surroundings before visiting in person.
The team reviews two on-market multifamily listings, discussing price discrepancies and the advantages of purpose-built properties over retrofitted ones.
They stress that off-market deals dominate the industry, with about 80% of transactions happening privately through investor networks.
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E120 How Do Experienced Investors Analyze Deals in Minutes?
0:57 – Intro
2:19 – The "Quick and Dirty" Multifamily Analysis Method
2:53 – Key Metrics: Dollar Per Door, Rent-to-Price Ratio, and Cap Rates
6:52 – Why Cap Rates in Listings Are Often Misleading
10:33 – How to Use Quick Math to Determine If a Deal Is Worth Pursuing
12:17 – Purpose-Built vs. Retrofit: Why It Matters for Investors
17:29 – Pricing Red Flags: When $300K Per Door Doesn’t Make Sense
20:12 – Off-Market Deals: Why 80% of Transactions Happen Privately
21:51 – The Importance of Using Google Street View Before Visiting Properties
Disclaimer: This episode, as with every episode of this show, should NOT be considered as advice. Investment advice is NEVER given on this show. Always consult a competent investment advisor before making an investment decision.
Andrew Hines is a seasoned real estate investor, business-builder, educator, and podcast host, well-recognized for his extensive experience in the field. Andrew graduated with an HBA from the Richard Ivey School of Business in 2008 and spent three years teaching introductory business at Western University as a Lecturer. He has been investing in real estate since 2011 and completing value-add projects since 2015, primarily in the luxury student rental space. Andrew started a project management company for building out new-construction townhomes in 2016 and has since built over 50 residential units throughout Southwestern Ontario. Andrew is an advocate for treating real estate investing like a business and uses his experience in his educational endeavors, coaching numerous investors on strategies to achieve financial independence and scale their portfolios effectively.
His podcast, "The Andrew Hines Real Estate Investing Podcast," serves as a platform for sharing insights, strategies, and success stories, connecting a community of like-minded individuals passionate about real estate investing. With a background that blends practical investing experience and investor-focused work, Andrew has become a pivotal figure in the Canadian real estate investing community.