The Difference in Class A vs Class C Accounting
- Noah Avery
- Aug 15
- 1 min read
The majority of the deals I underwrite are class C deals. However when I underwrite class A deals, it's almost like a relief.
Here's what I mean:
The class A deal I just underwrote didn't try and trick the buyer by inflating the numbers like almost all C class deals do
Loss to lease burned off gradually and gross potential rents didn't change in the T12 because the market environment didn't increase rents
Everything was categorized right and in an organized way
There were no ridiculous charges to pinch every dollar out of the tenant like many class C deals. For instance, on a class C deal in Texas I underwrote last week the tenants were charged a mandatory fee to "rent" the air conditioner...
Are there benefits to dealing with class C owners that have much less skill in accounting than class A owners? Sure, but it's a lot more hassle.
