Episode notes
OVERVIEW
In this episode of the Ironclad Underwriting Podcast, Jason and Frank break down the pitfalls of oversimplified underwriting, especially the “three-number method” popularized by real estate gurus. They explore why back-of-the-napkin math can help you screen deals, but will never replace real due diligence, business planning, and detailed financial analysis.
TOPICS COVERED
- The danger of underwriting large apartment deals with only three numbers
- How gurus oversimplify investing to sell programs
- Why initial calculators and 60-second models should only guide early screening
- The importance of lease expirations, turnover costs, payroll, taxes, insurance, and repairs
- How business plans drive NOI improvement
- Market realities: when rules of thumb like ...
Keywords
Commercial Real EstateunderwritingReal estate investingMultifamily syndicationsPassive incomeWealthRisk mitigationDeal analysis