31 Unit Apartment Ground Up Deal Structure & Financing Case Study
Get a real-world look inside the full structure and financing of a 31-unit apartment development. In this quick case study, you'll see how to run the numbers in minutes, structure a winning deal, and prepare professional funding presentations for banks and lenders. Whether you're new to ground-up construction or looking to scale your multifamily portfolio, this case study shows you exactly how it’s done — step by step.
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What is the return on each partners 50% investment in the project? How do you calculate that.
Hi Robert – solid question! The return here depends on the specific partnership agreement for this project, and that kind of structure can vary quite a bit from deal to deal. No promises, but I’ll see if I can get you a bit more info on how this one was set up. 🤞
In general, Rehab Valuator can help you model and calculate partner splits along with different financing scenarios, so you can see how returns might look in your own deals. Keep in mind that the exact breakdown here is unique to this deal and partnership, not a fixed calculation. 🙂
Hi Daniel, All of this sounds good but in a small town in Northern AZ I am skeptical about interest rates, costs of land, and rent capability to extinguish monthly payment obligations. Do you have any Arizona experience? i am verry interested in moving into Real Estate, but I am skeptical in Az. Is there another state where the numbers work to produce a cap rate?
Hi Linda – totally fair concerns! Smaller markets can definitely make the numbers tighter depending on those things. Daniil doesn’t have specific Arizona experience, but what he’s showing here can work anywhere – it just comes down to finding the right balance between what you pay, what it costs to build, and what you can realistically rent for.
You might find it helpful to plug in a few local examples in Rehab Valuator to see how the numbers play out – that’s the easiest way to tell if deals in your area make sense or if another market might work better. 🙂
Hi Daniil
I noticed the cash flow projections — did you run an NPV analysis to assess the project’s overall profitability over time? and if so, can you point it out in your video?
Hi Nkem – great question! Daniil didn’t run an NPV analysis in this video – it focuses more on structuring the deal, modeling rents and expenses, and showing how the financing and cash flow work once the building is stabilized. Rehab Valuator is currently built for short-term modeling (up to 24 months), so it doesn’t calculate NPV yet – but that’s something we plan to add down the road. 🙂
Daniil,
I just watched your video. The property is valued at $8.9 million once stabilized. Why is the land, even while entitled with plans, valued at only $450k—which is just 5% of the building’s value? For a property of this type (MF), isn’t the land typically valued closer to 20–30% (entitled) of the $8.9 million? And the raw lot value ~10% ?
Best,
Joshua
Hi Joshua – great question! In this case, Daniil bought the land for only about $140K – far below what a typical developer would pay – then another ~$150K was spent in soft costs. No other work had been done to the land yet, so the $450k represents the true market value of the land and soft costs at that time.
You’re right that for most multifamily projects, land can often make up a larger % of the stabilized value depending on numerous factors including market, zoning, and timing. This one just happened to be a really good deal on the front end. 🙂
Are you using agency debt? I have not seen a local regional bank offering loans with 30-year terms—usually 20-year amortization with a 5-year balloon.
Hi Luciano. You can definitely secure 30-year amortizing permanent debt from local banks. Maybe not every one will offer but yes, it’s out there. Additionally, yes, large enough assets like the one in this case study can be refinanced into non-recourse agency debt like Fannie Mae and that’s usually 30-year debt
Hi , are you adding banks that actually fund these deals ? Is there a list to help us navigate that process ? Thank you
Hi Jennifer – great question! We don’t keep a list of banks or lenders, but the funding presentations in Rehab Valuator are designed to help you approach both local banks and private lenders. You’ll have a complete, professional report that clearly shows your project’s numbers, risk, and return. If you haven’t already, you might want to start by reaching out to smaller community banks or credit unions in your area – they’re often the most flexible on financing. 🙂
Phenomenal.
Daniil,
Thanks for sharing your dream, your process, and your vision.
We appreciate the opportunity to learn how you RehabValuator, how you propose to fund it, and how you plan to build it — literally and figuratively.
Hi Daniil, It looks like you once again came up with another beautiful, well thought out apartment project – a place where good renters will like to live. My congratulations and best of luck with the entire project!
If you’re ever in need for funding, I work with private lenders that I know can and will assist you in securing the funds that you’re seeking or will need.
Need your help to get the private lender thank you