All About Underwriting - Questions

[Brianna Arce]

Hi everyone, 

Recently, I have been focusing my efforts on learning how to accurately underwrite deals. As a beginner, I got some great insight into the process after just recently watching this BP video. While I still have an entire playlist of YouTube videos to watch to continue learning, I thought I'd ask some of the questions that keep popping up in my head for those who regularly underwrite their deals. I'd love to hear some of your thoughts! 

How did you learn how to underwrite? How long did it take you to truly learn and understand how to accurately underwrite a deal?

How long does it typically take for you to underwrite a deal?

What are some of the best tips and resources you have received/used that have helped you to become better at underwriting?

What are, if any, some of the most common mistakes you see people make during the underwriting process?

What are some of the best practices/rules of thumb for underwriting?

What is your own personal best piece of advice on how to become better at underwriting and accurately analyze a deal?

[Nicholas L.]

What size / class of properties?

Top tips:

-Include ALL expenses.  No omitting anything, or not knowing that a utility is shared / paid by the owner, or that there is a $50 business license cost or whatever the case is for the specific property.

-Include ACTUAL numbers.  No formulas.  If it needs a roof in 4 years, price a roof.  If you don't anticipate any vacancy, don't include vacancy.