Leverage has helped a lot of multifamily operators generate great returns over the past decade, but too much leverage and an uncooperative market can cut the other way and end up badly. When underwriting deals, it’s critical do be overly conservative to account for realistic rent growth and growingexpenses.
Jordan Fisher, Principal of Next Wave Investors, incorporates ruthless conservatism into his underwriting in order to do well by investors and never lose a penny of their money.
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