30 Days of Free Multifamily Underwriting Tips

[Jason Baik]

My last post about my start in real estate got a decent amount of traction and I'm looking to continue providing some value to those starting out.

I'm a former data scientist and my superpower on teams is underwriting so I'm sharing tips / advice / perspectives on this niche skillset.

Underwriting isn't the most glamorous or lucrative skillset but if you're just starting out, it's (in my opinion) the BEST way to build your knowledge and confidence. You can find deals or raise capital by reiterating some key points but being an underwriter means you're the one responsible for most of the numbers-related questions. You're forced to learn about debt, market rents, investor returns, macro trends, sensitivity analyses etc. in order to underwrite effectively and help your team navigate getting that deal closed.

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Tip #1/ Underwriting neither begins nor ends with a spreadsheet. If you’re defaulting straight to an Excel when you’re looking at a deal, your process can become more efficient. My personal tip? Drive around on Google Maps first. Does this look like a place that you’d want to invest?

I'm guilty of spending 5 hours filling out a spreadsheet before realizing the property was in a class D area (which isn’t my strategy).

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I'll continue to update this thread every single day (workdays and non-holidays) for the next 30 days.

Jason