How-To Guides
Step-by-step CRE procedures, written by someone who does them.
10 step-by-step procedural guides for commercial real estate. Cap rate calculation, QI vetting, multifamily underwriting, DST evaluation, NNN negotiation, Form 8824 filing, and more.
1031 Exchange
4- 1031 Exchange 8 steps
How to Vet a Qualified Intermediary (QI)
To vet a Qualified Intermediary for a 1031 exchange, verify segregated exchange accounts, confirm fidelity bond and E&O insurance coverage, request the firm's financials, and ensure the QI is not a disqualified person under IRS rules.
Open the guide - 1031 Exchange 8 steps
How to File IRS Form 8824 for a 1031 Exchange
To file IRS Form 8824 for a 1031 exchange, report the exchange with your federal tax return for the year the relinquished property closed, providing property descriptions, dates, fair market values, adjusted basis, realized gain, and recognized gain (including any boot).
Open the guide - 1031 Exchange 8 steps
How to Identify 1031 Replacement Property (The 45-Day Form)
To identify 1031 replacement property, deliver a written, signed identification to your Qualified Intermediary by midnight on day 45 after the relinquished property closes, using street address, legal description, or APN, under the Three-Property Rule, 200% Rule, or 95% Rule.
Open the guide - 1031 Exchange 9 steps
How to Build a 1031 Exchange Timeline
To build a 1031 exchange timeline, start from your relinquished property closing date, mark day 45 (identification deadline) and day 180 (closing deadline), then set checkpoint dates at days 14, 30, 40, 120, and 150 for ongoing task cadence.
Open the guide
Underwriting
3- Underwriting 8 steps
How to Read a Multifamily Rent Roll
To read a multifamily rent roll, verify unit-level detail (unit, bedrooms/bathrooms, square footage), lease dates, in-place rent vs. market rent, concessions, tenant deposit, and renewal/move-out status for each unit.
Open the guide - Underwriting 8 steps
How to Underwrite a Multifamily Deal
To underwrite a multifamily acquisition, start with the T-12 actuals, verify the rent roll, adjust for realistic pro forma assumptions (rent growth, vacancy, expense inflation), size debt against stabilized DSCR, and stress-test exit cap rate movement.
Open the guide - Underwriting 8 steps
How to Read a Commercial T-12
To read a T-12 (trailing 12 months) commercial real estate income statement, verify revenue lines are complete and realistic, scrutinize operating expenses for missing categories (management fee, reserves, insurance), and reconcile the stated NOI against adjusted-actual NOI.
Open the guide