5 Talents Podcast - How To Build Wealth Like the 1%

Rama Krishna Chunchu - How To Stress Test Your Underwriting Assumptions

February 04, 2023 Abel Pacheco Episode 227
5 Talents Podcast - How To Build Wealth Like the 1%
Rama Krishna Chunchu - How To Stress Test Your Underwriting Assumptions
Show Notes

Rama is the Founder of USHA Investment Group LLC. Rama Krishna Chunchu has a B.E in Mechanical Engineering from Osmania University, India, and corporate background in I.T. Investing in Real Estate since 2015 in North Carolina, FL, and MD. Equity partner in 750+ units’ multifamily assets, in FL, MD, and NC markets. GP in 64 units.

Rama found his passion for multifamily apartments. He started his podcast and virtual conference with the goal of educating passive and active multifamily investors on how to achieve financial freedom and build long-term wealth. He is passionate about apartment investing, reading books, cricket, and martial arts.

[00:01 - 03:14] Opening Segment

  • Introducing Rama to the show!
  • He is the founder of the USHA Investment Group

[03:15 - 15:02] Exploring The Financial Analysis Of Real Estate Investing

  • Investing in single-family homes and townhomes
  • Exploring the multi-family space due to challenges while managing multiple deals across multiple locations
  • Investing in 708 houses before making the jump to becoming a limited partner passive investor in multi-family
  • Underwriting is the financial analysis of commercial properties and determine what price to pay for a property

[15:03 - 31:27] How To Stress Test Your Underwriting Assumptions

  • Underwriters should pick up the phone and call property managers for special deals
  • Conservative underwriting should be used to cover unforeseen market conditions
  • Entry Cap versus Exit Cap
  • Stress test assumptions to see how occupancy, rent growth, and interest rates affect returns
  • Loss aversion is a common mindset when it comes to investing

[31:28 - 37:48] Closing Segment

  • Rama advises listeners to build relationships with brokers and reach out to more in the market 
  • See the links below to connect with Rama!


“To find the property's value, we need to do, you know, underwriting. So that's how we find the value of the particular property.” - Rama Chunchu

“The main reason behind going with a conservative with underwriting. So even in current market situations. So, we need to spread a little bit higher because no interest rates are going up. That definitely another factor.” - Rama Chunchu

Connect Rama through Website & LinkedIn!

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