Insight Series: The Week of A CFO - Part 1: Underwriting & Broker Outreach:
Underwriting and Broker Outreach
Dear Friends,
Ever wondered what goes on behind the scenes at a commercial multifamily investment firm? As the CFO of Level 7 Multifamily Investors, my week is filled with underwriting deals, connecting with brokers, and ensuring every investment decision aligns with our fiduciary duty to our investors.
This past week, we:
✅ Analyzed over 100 deals to find the best opportunities.
✅ Spoke to 5+ brokers to gain deeper market insights.
✅ Evaluated 7 new potential markets while staying disciplined to our strict investment criteria.
Here’s a look at what goes into the financial side of making smart multifamily investment decisions.
Underwriting & Broker Outreach: Finding the Right Deals
Underwriting is at the core of what we do—it’s how we separate great investments from average ones. Our benchmark for success? A deal must meet the following Key Performance Indicators (KPIs) before we even consider it:
📌 At least 5% Cash-on-Cash Return
📌 2x Equity Multiple over a 10-Year Hold
📌 10%+ Internal Rate of Return (IRR)
But underwriting alone isn’t enough. Market intelligence is key, and that’s where broker relationships come in. By speaking with brokers, we go beyond the numbers, uncovering hidden opportunities and risks. We ask the right questions to "peel back the layers of the onion" and ensure we're making informed decisions.
Market Research: Where Are the Next Great Opportunities?
Beyond just analyzing individual deals, we’re constantly evaluating new markets. This week, we researched 7 new potential markets and connected with local experts to get a deeper understanding of their strengths and risks.
Some key factors we consider when exploring a new market:
📍 Job growth & population trends – Is the demand for housing increasing?
📍 Cap rates & rental growth – Are the returns strong compared to other markets?
📍 Broker sentiment – What are local experts saying about investor competition and market cycles?
One broker insight stood out this week: Many secondary markets are seeing increasing investor activity due to affordability concerns in primary markets. That means the best deals might not be in major metro areas—but in fast-growing suburban and tertiary markets.
Fiduciary Responsibility: Protecting Investor Capital
At the end of the day, every decision we make is driven by one core principle: protecting and growing our investors’ capital.
Multifamily investing isn’t about chasing quick wins—it’s about long-term wealth generation through disciplined underwriting and strategic market selection.
That’s exactly why we left Airbnb and Fix & Flips behind and shifted our focus to commercial multifamily real estate. Which brings me to…
Call To Action: Join Our Webinar in March!
🖥️ Webinar: Why We Ditched Airbnb and Fix & Flips for Commercial Multifamily Real Estate
📅 Date: March [Exact Date to be determined]
📍 Where: Live on Zoom
🎟️ Reserve Your Spot Here: Claim Your Spot
In this exclusive session, we’ll break down:
✅ Why commercial multifamily is a safer, more scalable path to financial freedom.
✅ The biggest pitfalls of short-term rentals & single-family flipping (and our personal stories of what happened).
✅ How we analyze deals and choose markets to maximize investor returns.
Seats are limited, so be sure to register now!
Register for the Webinar Now!
Final Thoughts
Every week as a CFO is filled with challenges, opportunities, and a relentless focus on finding the best deals while protecting our investors. If you’ve ever considered investing in commercial multifamily real estate, I’d love to see you at our webinar.
Thanks for being part of our journey. If you have any questions, feel free to reach out to me —I’d love to hear your thoughts!
To your success,
Manny Del Val
CFO, Level 7 Multifamily Investors
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