MB 231: Lessons of a Master Multifamily Deal Finder – With Garrett Lynch

<p>2020 has been a tough year for finding deals—even for us. In fact, the <a href="https://nighthawkequity.com/">Nighthawk Equity</a> team is currently in the process of closing on our first and only deal of the year (so far). But that’s not for lack of trying! So, what are we looking for in a deal right now? How have we changed our underwriting criteria in the age of COVID? And how do we recover from the disappointment of losing a deal?</p> <p>Garrett Lynch is the Director of Acquisitions at Nighthawk Equity, the investing arm of the Michael Blank organization. Garrett has been in the multifamily space since 2011, cofounding a firm that grew from zero to 3,400 units before successfully exiting that venture. Since taking on his role with us at Nighthawk in 2018, Garrett has built a portfolio that includes at 218-unit property in Little Rock, Arkansas a 276-unit in Huntsville, Alabama, and a 130-unit deal in Atlanta, Georgia.</p> <p>On this episode of Apartment Building Investing, Garrett joins me to explain how his strategy for finding multifamily deals has evolved over the years and what we look for in a deal at Nighthawk Equity. He describes what he does to build rapport with brokers and stay in touch, sharing how strong broker relationships helped us land our current deal in Atlanta. Listen in for Garrett’s insight on recovering from the disappointment of losing a deal and learn how to adjust your underwriting to find good multifamily deals in the COVID era.</p> <h3>Key Takeaways</h3> <p>How Garrett’s strategy for finding deals has evolved over the years</p> <ul> <li>Look for best price per door in D class neighborhoods early on</li> <li>More granular on underwriting today, focus on B and C class</li> </ul> <p>How we dialed in our criteria for deals at Nighthawk Equity</p> <ul> <li>Look at capacity on equity raise and debt structure</li> <li>Gradual progression on size of deals</li> <li>Choose value-add properties in certain markets</li> </ul> <p>The benefits of collocating deals in just a few markets</p> <ul>