Jacob Langner Ⓥ

[Jacob Langner Ⓥ @Jacobxlang]

@robbiehendricks Love it!

[Jacob Langner Ⓥ @Jacobxlang]

@GenZMultifamily That’s my biggest barrier currently from managing myself again. How’d you find her?

[Jacob Langner Ⓥ @Jacobxlang]

@robbiehendricks Hi Robbie, I’m not verified so I’m unable to DM you but I’ve been reading all of your posts for sometime now and find them incredibly valuable as a young GP still figuring it out.

I would love to get your updates to stay more plugged into your company/posts.

[Jacob Langner Ⓥ @Jacobxlang]

@robbiehendricks Love this Rob

[Robbie Hendricks @robbiehendricks]

One of the most important investor relations docs you need to send is:

The Welcome & What to Expect Letter

This letter has saved us countless questions, ensured that our investors know what to expect, how to get a hold of us, tax stuff, and more.

Here’s what it covers:

[Robbie Hendricks @robbiehendricks]

We were sitting w/reps from Freddie a few weeks ago.

FM: How do you fund these deals?
Us: We syndicate.

(Eye roll. They were concerned.)

FM: What is your structure?
Us: 85/15. No pref/AM fee. 2.5% PM.

(Sigh of relief)

FM: That’s perfect.

Let me tell you why they perked up:

[Jacob Langner Ⓥ @Jacobxlang]

@Paragondisciple Denvaaaa

[StripMallGuy @realEstateTrent]

I rarely post about what at huge hack it is to find great people to invest with because I am a GP myself and know how that may be viewed.

For the record, our fund is closed -- so I hope this is seen as objective as possible:

Some thoughts:

[Jacob Langner Ⓥ @Jacobxlang]

@edmsillygoose Archimedes Principle

[Ash Crypto @AshCrypto]

🚨 BIG BREAKING 🚨

BLACKROCK CEO LARRY FINK WITH
$10 TRILLION SAYS HE WAS WRONG
ABOUT #BITCOIN AND HE IS NOW
MAJOR BELIEVER AFTER STUDYING
BITCOIN.

THIS IS ULTRA GIGA BULLISH 🔥

$150,000 - $250,000 BITCOIN IS
CONFIRMED IN NEXT 12 MONTHS.

[Jacob Langner Ⓥ @Jacobxlang]

“Balanced regret is what helps you become a better person. Unbalanced guilt is what destroys you.” - Dewayne

[Benji Newman @acebenji]

When the time is right, I the Lord will make it happen. Isaiah 60:22

[Topher Stephenson | CRE AI, Ops, Marketing @TopherNOW]

If you’re not using AI in #CRE, you’ll fall behind, it’s a matter of when.

But there’s 100’s of new #AI tools every week, and most of them are useless.

Here are 8 tools that will ACTUALLY save you time.

🧵

[Vidit Saxena @supermode_]

A simple visual example of how real estate waterfall deal structure works.

[Jacob Langner Ⓥ @Jacobxlang]

@SBA_Matthias If I’m not mistaken, you’re crossing your thumbs. Don’t do that. Holding the gun properly is the first step before stance.

[Moses Kagan @moseskagan]

Posting this as a pic & without tagging my friend “at mhprvmvp” in order to maximize distribution from the algo, bc the message is so important.

Do not give up on life; your kids need you.

[Nick Huber @sweatystartup]

If you're new to the real estate community on X this is a must-read.

A thread on how most real estate folks structure deals with outside investors.

Most GPs utilize the "preferred equity" structure when they raise money from outside investors.

They "syndicate" deals.

Here's the basics:

[The Real Estate God @TheRealEstateG6]

“How do I analyze a deal in 5 minutes?”

// The Art of the Back of the Envelope //

BOE’s are extremely easy

Basically what you’ll be doing is:
1. Multiplying market rents by the property’s unit count
2. Applying a vacancy factor to get total revenue
3. Multiplying the total revenue by the market NOI margin to get NOI
4. Dividing the NOI by your total cost in the deal to get your stabilized yield
5. Comparing your stabilized yield to the market cap rate (greater than 150 bp spread means it pencils)

Here’s an example: Let’s assume that you’re underwriting a 10-unit deal in a market with a 5% vacancy rate where market rents are $1,000, the NOI margin is 65% and the market cap rate is 7%. You’d be buying the property for $700k and spending $100k on renovations

10 units * 12 months * $1,000 market rents = $120,000

$120,000 * 95% occupancy = $114,000 total revenue

$114,000 total revenue * 65% NOI margin = $74,100 NOI

$74,100 NOI / $800k total cost = 9.3% stabilized yield

9.3% is 230 basis points above the 7% market cap rate, which means the deal pencils

Why does it pencil?

The property would be worth $74,100 / 7% market cap rate = $1,058,571, which would be over $250k of profit

Simple. Didn’t even take 5 minutes - you’ve analyzed the deal in about 30 seconds

So what’s the catch? The hard part of the process is making sure you have the right assumptions. If the market rent, market NOI margin or market cap rate is off, your numbers are going to be wildly inaccurate

That’s why you have to know your market cold when you’re buying real estate. The math is as simple as it gets, the money is in having the right process to arrive at the correct assumptions

If you’d like to learn how to underwrite and buy deals like this (or even smaller deals, my first deal was $200k and I only used $2,500 of my own capital) apply in the next tweet for the Acquisitions Bootcamp to work 1-on-1 with me