Underwriting: turning weaknesses to strengths

[Jason Malabute]

A few months ago my biggest weakness was my underwriting. So I promised myself Id turn this weakness and turn it into a strength. I read books on the subject. My first step was to ask people who better than me at underwriting for book suggestions about underwriting . One book that was recommended to me was "Robert BeardsleyThe Definitive Guide to Underwriting Multifamily Acquisitions". Next thing I did was find another mentor that specializes in underwriting. I have been taking his class every Saturday and my underwriting has improved so much in just a few weeks . I have learned so many underwriting techniques like:

1) Income is based on the T3 (last 3 months) while expenses are based on the T12 (last 12 months)

2) If the T12 provided is less than 12 months than you need to annualize the expenses

3) how to work the deal analyzer calculator 

  Another thing I do is I underwrite deals myself to see if I get the same calculations as my mentor. Lastly, I do a quick and dirty underwriting on 3-4 leads per week that we submit offers on. I spend countless hours perfecting my craft.I can't say a pro in underwriting and I am getting there. I would definitely say that underwriting is more of an art than a science.