RSN Property Group
RSN Property Group is a leading multifamily investment firm based in Southern California that specializes in acquiring and managing value-add properties
in key metropolitan areas across the United States. However, the company faced some challenges in the area of underwriting, which prevented them from
expanding its operations. It has closed 11 properties with 2908 units worth more than $480 million in acquisitions.
Challenges
- Reed is the CEO and founder of RSN Property Group, and he is busy with multiple business pursuits, including hosting a podcast, building broker relations, touring properties, etc. He doesn’t have enough capacity to underwrite deals as he is preoccupied with other tasks. As RSN starts to grow Underwriting becomes a bottleneck of his business.
- RSN Property Group is not yet ready to hire a full-time person on its payroll. Hiring a full-time underwriting analyst requires compliance with employment regulations in the USA.
- Reed needs a solution that could work with his existing Underwriting Model and the process, as he is comfortable with the way he Underwrites deals.
Solution
You don’t need to keep analysts on your payroll- RSN Property Group partnered with RealVal, and we provided them with affordable
underwriting services. RealVal's team of multifamily underwriting experts was able to provide a flexible solution that met RSN's unique needs.
Step 1- Understanding and Improving the Existing Process
We started to Underwrite deals on Reed’s model and took some time to familiarize ourselves with it. We identified and improved upon any small
inefficiencies in the model, keeping it updated as the market changed.
Step 2- Analyze deals to understand the new market.
As RSN’s target was to invest in new emerging markets, we underwrote 150-200 deals in 4-5 months, created a summary of our findings, and collected data
from Underwritings to understand the new market. Getting boots on the ground was necessary, so Reed started to tour and network with brokers to get
further insights while we took charge of the Underwriting process.
As a result of our underwriting services, RSN was able to close two portfolio deals consisting of four properties within five months.
With more than 450 deals underwritten, RSN streamlined its underwriting process, analyzed opportunities in new markets, and expanded
its operations without the need for a full-time in-house underwriting team at the start.
Eventually, they built a team of multiple analysts with our support.
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