Underwriting & Model Creation

[Jackson Forbes]

Anyone else feel like this market is forcing you to slow down and really think through deals a bit more than usual?

I’ve been spending more time lately going deeper on underwriting and actually stress-testing assumptions—rent growth, expense ratios, exit caps, debt terms. It’s interesting how different a deal can look once you really start pulling those levers instead of relying on surface-level numbers.

What’s stood out to me is how much the margin for error has shrunk. Deals that might’ve penciled a year or two ago feel a lot tighter today, and small changes in assumptions can make a pretty big difference in outcomes.

I’ve also been thinking more about market selection and business plans—what actually has real demand behind it versus what just looks good on paper.

Curious how others are approaching things right now:
Are you underwriting more conservatively?
Are you still finding deals that make sense in today’s environment?
Or are you sitting on the sidelines and waiting for more clarity?

Would be interesting to hear what people are seeing.