Acquisition Analysis
Veteran and Novice multifamily investors alike face the strenuous task of investigating, analyzing, and underwriting potential opportunities as candidates for purchase. Below the surface of a general acquisition analysis, multifamily investors must also consider the property's current ownership, financing availability, market trends, and any upcoming legislature that could affect their investment. With our experience and knowledge of Southern California’s multifamily markets and our close eye on nationwide market trends and government ordinances, LFA is strategically positioned to advise investors preparing for Southern California multifamily acquisitions properly. If you are considering a particular property or are currently searching for a multifamily property to purchase, please feel free to contact us for a free comprehensive analysis of the following.
Property Location
The most critical step in analyzing any multifamily property for purchase starts with understanding the property’s location. Factors such as nearby amenities, developments, employment opportunities, local crime rates, school districts, government legislation, and demographics are important variables when understanding a property’s value. Therefore, our first step in an acquisition analysis is to communicate an evaluation of our client’s selected subject area based on our knowledge, experience, and individual examination of each special deal.
Property Characteristics
After concluding an analysis that examines the subject property’s location, the next phase of an acquisition analysis is to understand the apartment building’s characteristics. Elements such as year of construction, unit mix, construction type, landscaping, and lot configuration can positively or negatively affect a property’s value today and its future ability to appreciate. Therefore, we take it upon ourselves to fully evaluate and discuss these variables with our clients throughout the acquisition analysis process.
Property Financials
The final step in our acquisition analysis process is understanding the financials and economics of any potential transaction. Property income, comparable sale comps, potential rent increases, available financing, and market trends are independently assessed and conveyed to our clients when our analysis concludes. Following an understanding of the transaction’s economics, we can confidently say a suggested target price for our clients to reach during a purchase negotiation. We take pride in staying involved throughout the process, from negotiation to losing, while fulfilling our fiduciary responsibility to our client’s best interests.
Tax and Legal Advice Disclaimer
LFA Multifamily does not provide tax, legal, or accounting advice. This material has been prepared for informational purposes only and is not intended to provide, and should not be relied on, for tax, legal, or accounting advice. You should consult your tax, legal, and accounting advisors before engaging in any transaction.