For those new to multifamily investing, it’s tempting to try and find the slickest, newest software or online tools with all the bells and whistles, but there are easy ways to manage vital numbers and information yourself. We follow up our last article with more advice from BAM founder and CEO, Ivan Barratt, in today’s edition of the BAM Blog…
Are you a Syndicator Looking for Tools?
Whether you’re new to syndication or just getting into the game, you’ll still want to track and calculate the same information. You may be asking, isn’t there just some snazzy tool I can find to keep track of what different investors contribute, ownership interests, or to help run different “what if” hypothetical situations? To that we say that while there are plenty of tools that syndicators use, Ivan has some practical advice born from experience.
Try to Figure it Yourself
Ivan is practical and straightforward when he says that until BAM grew large enough to put forth the expense for a pricier platform, he used a combination of simple basics to figure out what he needed to know. Many syndicators can back this up: using Excel, working with a property accountant, and having a CPA go over the calculations periodically can get you the answers you need until you can make the jump to industry-specific (and more expensive) methods.
The Benefits of DIY
As we mentioned in our last article, in which Ivan suggests using Excel to figure investor pay outs, there are certain benefits in doing-it-yourself. Although it might not be quite as quick as pressing a button and having a number pop up, by working through the calculations yourself, you’ll gain a real understanding of how the waterfall pays out. Similarly, by working through various scenarios, working with investor numbers, and doing it yourself, you’ll gain a better understanding of some of the fundamentals of multifamily deals.
Want to see what else Ivan recommends for multifamily investing? Head over to ivanbarratteducation.com. You’ll find a free library with videos and articles featuring Ivan’s industry experience and knowledge, explained in a common sense, entertaining style.