THE IMPORTANCE OF PRACTICING UNDERWRITING

Underwriting is one of the key pillars of Real Estate.

Just as 'practice' is the key to mastering any skill, the same stands true for underwriting too! You can get real good at underwriting by consistent practice.

Underwriting is a crucial aspect of being an investor since it lets you evaluate how much you should be willing to pay for a property, based on performance!

Many investors struggle with underwriting deals at first. But telling from personal experience, getting a mentor helps a lot! So, here are a few tips that help a lot, provided we don’t skip out on any of these:

Tips to Strengthen Underwriting

• Practice Underwriting at least 2 deals daily
• Familiarize yourself with the cap rates in your market
• Dig out information about rent and unit count of the property either from the owner, apartments.com, zilliow, etc.
• Get accurate estimations about rehab cost per unit from the contractors.

Certainly, having an experienced mentor helps a lot, as it cuts the learning journey short and makes you learn underwriting way faster.