Real Estate Private Equity

What is multifamily property?

A multifamily property is any property that has more than one unit. It is an excellent way for first-time investors to enter the rental market, as they are typically financed by banks in the same way as are single family homes.

Advantages of Investing

• A steady source of cash flow with predictable rent payments, especially in a robust and growing property market like Qatar.
• Reduced risks compared to other real estate asset classes like commercial properties because people need somewhere to live even during an economic downturn.

Common Risks of Investing

• Variable operating costs and down payment required by lenders, depending on location.
• High renovation and maintenance costs due to the property size and total number of occupants
• Capital stack structure 
• Syndications and fee structures
• Marketing and Turnover Expenses

Valuation and Underwriting

• Identifying the targeted properties
• Initial underwriting, which may include current rent-roll, total number of leased units, total number of tenants, total amount of rent generated by the property, floor plans and layouts, current operating expenses, and leases lengths
• Visiting the property to inspect its condition, location and trading area in order to plan maintenance needs, renovation or any other improvements.
• Doing market research and refining underwriting, including debt quotes, updated rental market trends, updated rent roll/T-12, and revised renovation budgets.