Muli-family Basics
The single metric lenders care about more than cap rate.
DSCR
What is the first document that actually creates leverage in a deal?
Written Offer/LOI
What type of tax does a 1031 exchange defer?
What is Capital Gains Tax
What does “stabilized” mean to a lender?
Sustained occupancy and income (typically ~90%+)
What mistake turns strong buyer interest into radio silence?
Poor follow-up
If NOI increases by $50,000 and the exit cap is 6.25%, how much value is created?
$800,000 (50,000 ÷ 0.0625)
What is the single most important goal during due diligence?
Verify income and expenses
How many days does a seller have to identify replacement properties after closing the sale?
What is 45 days
What’s another term for seller financing?
Seller carry / seller note
What’s the first thing that should be logged immediately after a live owner conversation?
Clear call notes + next action
What is the most dangerous assumption in a value-add underwriting?
Future rent growth
What should a broker be doing daily once a deal is under contract?
Driving timelines and communication
This structure is often used to park exchange proceeds when no direct property can be identified in time. Full Words
What is Delaware Statutory Trust
What does “as-is” fail to protect a seller from?
Fraud or misrepresentation
What internal behavior costs you more deals than bad pricing or bad markets?
Lack of urgency/ Confidence
A property raises rents $150/unit/month across 40 units. Why might value not increase materially?
Expenses, concessions, vacancy, or delinquency may offset gains
What financing delay is hardest to recover from late in the process?
Equity gap
What happens if exchange funds are accidentally wired to the seller instead of the QI?
The exchange is disqualified
What does “credit tenant” imply?
Strong, reliable tenant financials
This makes the job easier, the wins bigger, and the losses smaller — but is easy to skip.
Preparation
When do you start to take Cap Rate more into Account as PPU? (Unit Count)
25-30 Units
Name 3 ways brokers lose control of deals.
Letting attorneys drive, avoiding hard conversations, poor follow-up
Name 2 Qualified Intermediaries for 1031 Exchanges a client can use in Chicagoland.
IPX1031 - Investment Property Exchange Services, Inc. , Chicago Deferred Exchange Company, Exeter 1031 Exchange Services, LLC , First American Exchange Company , Chicagoland 1031 Exchange ,
What does “gross potential rent (GPR)” assume?
100% occupancy at market rents
What should you use while initial outreach - especially for beginner brokers?
Scripts