Dad TEACHES KID how to UNDERWRITE REAL ESTATE DEAL 

Grant, you’re a great role model and father! I’m a dad of 8, self made too, and own a billboard company in Okc & Tulsa. My son underwrote real estate investment categories for his senior thesis. I use your videos as education for my kids. God bless America and God bless you, your family, and your business.

00:00 🏢 The video focuses on underwriting a 500-unit real estate deal in Chicago worth $150 million. 01:11 🧮 The process involves calculating total gross possible income based on average rent, taking into account occupancy rates and additional income sources. 03:00 💰 The Net Operating Income (NOI) is derived by subtracting expenses from income, which helps determine the price to pay for the property. 03:46 🏗️ The property is considered a good deal, as it's estimated to be $150 million below the cost of replacement. Increasing rents can significantly raise the property's value. 05:22 💵 The strategy could potentially yield substantial returns for investors, with the property's value projected to increase by over $100 million if rent hikes are realized over a decade.

She's so lucky to have you to teach her that stuff!❤

Managing money is different from accumulating wealth, and the lack of investment education in schools may explain why people struggle to maintain their financial gains. The examples you provided are relevant, and I personally benefited from the market crisis, as I embrace challenging times while others tend to avoid them. Well, at least my advisor does too, jokingly

From the bottom of my heart Grant thank you so much for helping so many people for free, you dont have to do any of this , love you man.

I love this , Grants not only a great business man he’s also a great father for very inspirational.

This is not underwriting, however it’s called a Back Of An Envelope/Back Of A Napkin analysis which is a quick way to tell if you should do the deal or not. If you do the deal then underwriting is way more intensive and includes a variety of metrics for acquisition, debt service, interest rates, cash flows and returns over the hold period.

Wish i had a father like that, most of us have to figure out everything by ourselfs

Yall thought Rich kids don’t know nothing, what were you being taught at 14? Being rich makes you figure things out faster.

First! Grant people understand how smart you are just because you speak simply. I appreciate your gems 💎 🙌🏾!

Grant I Love ya Grant , and Sabrina You rock ! My daughter Jamie worked with me Side by side in our business. People would say your daughter is smart and carries herself Well! This isn't luck Both of you work for this Good Job ! This video's real Value is in Dad and Daughter! The real estate class takes a 2nd position! Rock ON !

Grant this is an incredible education for your Sarina. Warren Buffet's father taught him the importance of financial literacy and sound investment principles. His father encouraged him to be an independent thinker and to make his own decisions.

Your plan seems solid, and the chance to make more money as the rent goes up is impressive. Can't wait to see how it goes!

Love & Gratitude Brother Grant! As usual another great lesson. If our daughters can get it then there is no excuse for personal failure! I just binged watched Undercover Billionaire again to stay grounded, stay humble but stay hungry in the climb to 10X! Much 10X Chi-Town Love Blessings & Success your way always From Your Brother Noble in Chicago!

Im going to raise and treat my daughter like Grant treats his. ❤

Sabrina will be super success and keep this legacy’s. can’t wait to see her do big things in the Future

Very good idea. Taught my son how to underwrite multifamily deals. Made sure I kept it simple enough for an 11 year old to understand.

Grant you're phenomenal one of the for certain geniuses that I tend to study through. Most accurate and knowledgeable around today's housing market.

Thank you for this contact I always wondered how to underwrite a deal because I never understood where your values came from as far as the numbers, so thank you for sharing this I look forward to building with you in the future

Lucky and blessed kid man being able to get all that knowledge so young that’s dope

GREAT FATHER AND A GREAT MAN.

Buying a 5.5% yield resi complex in times of 8% mortgage rates. They don't teach that at Ivy League colleges or on Wallstreet for a reason.

I do not see the link. Another great video. Thank you, Grant. You are honest, and you have more discipline than anyone I have come across.

So cool how you are showing your kid at such a young age!

This video was great to see, the education given/passed on is invaluable

Our family is Durst. I was brought into the family by the late Edith Durst. Yes, rich kids are taught differently. I went to graduate school at age 18 to Yale University, after starting college at 13. No student debt . Thanks Durst family! Michael Oher pay attention to how I thank my family ..not with a lawsuit !

Smart man... securing his kids future and legacy..

Should make more of these please 🙏. Like just the super basics to know if a property is even worth calling on or at least knowing what numbers to work. This was solid asf 🎉

How do you figure replacement cost, Grant? You’re an awesome role model. My husband and I are working to train our kids to have a healthy mindset around money! Thank you for all you do to help others in their journeys!

He never misses with this? What a business man

Home schooling at its best! Math put into practical use aligning with money skills and understanding. Great!

There's no greater thing, a long with love .that you can pass on to your kids.than knowledge that will teach them how to take care of them selves for life.

This is so simple, thank you!!!

God Bless your family Grant 🙏🏼 all love

love the father daughter teaching!!! ❤

Love this, exposed my kids to all aspects of real estate as a broker and owner (since they where babies) … they are thriving professionally now. I do think 40% expenses may be a little light. Would want to sharpen those line items just a little more. Good fundamentals. He doesn’t like regulated markets like NYC… and I don’t blame him. I’m selling a beautiful 113k s f double elevator building with indoor parking built in 1955 at about $90/foot. Would cost over $500 per to build. And it’s still tight!!! Rent control/stabilization sucks.

Wow, she's gotten so big. She'll be assisting you with running the business for sure in a few years. 🙂

Amazing great papa love GC well done that you are getting in bussiness Yang lady!!!

Finally a video from him where he isn't acting like an ass.. Good video with good info

Look at previous full cycle deals with exits for syndicators. That's where theory meets real world application and if what was proposed was delivered or more. Then look at where markets are at today with that past strategy. See if that still holds true if the syndicator is investing in same type deals at a different point in the economic cycle expecting the same result.

This is the Grant videos I fell in love with years ago

Great Insights and Parenting! You're a great role model which I would like to emulate in building wealth.

This is awesome Grant!

Good deal. Good parenting.

This is wonderful ❤

1. You can't just keeping raising rents as you suggest. You are limited by market forces and therefore people may leave increasing your non occupationacy rate thus reducing to total income. 2. Rebuild costs are irrelevant in assessment of value (unless of course you want to burn it down and collect insurance like the mob did). The market decides the value of the property. If everyone assesses the rebuild costs as double the msrket value then every home noi would go up overnight.

Love or hate GC, this is the stuff that should be being taught in school. Sabrina is at the age where (even if she wasn’t around it all the time) she will stay engaged enough and put it together. SC Capital is in the future.

You actually showed equations to make sense of the investment. Thank you, Grant. Tactics > Philosophy

This is how generational wealth is created. It’s not only creating the wealth for the next generation but then teaching the next generation how to manage and create more wealth. This is what the average person in our society doesn’t get. Then they get upset that certain families have wealth to pass down from one generation to the next.

You make it sound so easy❤❤❤

This is great if you have $150m in cash. Interest on the mortgage of this building will probably be in excess of $10M right now your actual cash flows would be negative in this scenario.

Love this!

Insane value! 💪👑💰✈

nice work Sabrina!

Not many who made it on "financial top" would share info. Thank you.

Grant kudos on teaching your kid, please post the video of the closing and the next 36 month performance.

Interesting thanks a lot for sharing

I really hope to be like this with my daughter one day...

Hey Grant thx for the tips

We're gonna make it 🥊

Thank you Uncle G!

Wow ❤❤🔥🔥🙌🙌👏👏 great accumulation of experience and good vibes. That's the energy of the Rich Vibrant Dynamic Opportunistic positive energy much greatful thank you Grant

Taking notes

Amazing! Raise up a child!!

Real Estate advise/lesson on a G6, what a life!

Great concept

That's wonderful but I have to repeat it again

Hi Grant, thanks for the content. What would the formula look like if you needed to finance through the bank?

She is growing so fast

Such an empowering lesson from Grant on the fundamentals of real estate, and the fact that it's with his kid makes it all the more relatable and inspiring! 🏡📈 Here are my top three takeaways: 1⃣ Start Early: Age is not a barrier when it comes to learning about real estate or any investment. Grant proves that even kids can understand the basics if taught in an accessible way. The earlier we start, the better equipped we are to make informed decisions in the future. 2⃣ The Power of Underwriting: Understanding the numbers is crucial. Grant emphasizes the importance of underwriting and how it's the backbone of any successful real estate deal. Proper analysis ensures you know the value and potential risks before diving in. 3⃣ Hands-on Learning: Theory is important, but nothing beats hands-on learning. Watching Grant and his kid go through an actual underwriting process brings the concepts to life and highlights the practical aspects of real estate investing. Thanks, Grant, for this educational gem! It's lessons like these that remind us of the importance of financial literacy from a young age. 💰🧠

Love it

Great video

great education

Yes I would like the formula

Greeeaaattt sir✌✌✌✌👍

Triple 👍 👍 👍 ! I wish I had had someone teach me like that when I was a kid!

where can i get that book? love the video!

Teach them young to be the successors of our future

Great

Wow she used to look a lot like dad now she looks identical to mama !! She seems like a real sweetheart, don’t turn her into a greedy person.

I calculated up to the NOI. Got lost after that 😅😅😅

What makes it 300M replacement cost? How did you determine that?

Can someone please explain the divison by the 0.55 what was the meaning behind that. Thank you!

@Grant, can I ask why you divided 9.24 by 0.55 please?

At first I thought ‘that’s Sabrina!’; it’s been a while since I last saw a video; last I remember, she gave a speech as a little girl at a 10X Growth Con

If you finance 80% of purchase with 8% interest, the annual interest cost is $9million. Are you going to pay cash for the property or financing it?

Hello!! What is the underwriting formula? 🙏🏻

I don’t like GC religion and politics. In business that’s private info. But I like how he thinks family is important and he educates his daughters 👏

@3:25 what does the .055 represent dividing into the NOI?

Ben Mallah is more a true guy. In this realestate investment things . And i understand some if it although doing it small scale in europe. 150mln deals selling your plan to investors taking 1mln for yourself a year is good bussiness. Hardly financial risk, and do 10+ in a year your a winner. Just sell your plan and let others take the risk.😊

What is the 0.55 for?

Why did they consider the scenario of rebuilding the property? (300 M - 150 M = 150 M)

What if rents go down?

What happens when the rent goes down?

Hold on 2628 avg rent on Michigan Ave? I dunno about that unless it’s 500 micro studios.

In other other words, offer a 5.5% cap rate in class A cities.

Wow I am a practical learner when can we and I meet

Where is the 0.055 from?

Now I just need to get 150 million... No biggie

Just because we can doesn't mean we should especially in real estate. In entertainment, maybe, healthcare probably not, food probably not. This is part of the problem today that everyone who truly works can't afford a place to rest their head at night and have a refuge from the world.