how to get great at underwriting

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

I had to struggle a lot with underwriting initially. However, the learning curve was cut short when I got a mentor for it. So, getting a mentor helps a lot!

As per my experiences, one should practice underwriting at least two deals a day. Moreover, you should get familiar with the cap rates in your market and find feasible sources to know the rent amount and units count of the property. You can also ask the owners for this, or get it from apartments.com, Zillow, etc.

Next, it’s also important that you get correct estimations of the rehab cost, and the most authentic figures about rehab can be received from the contractors. Get per unit estimations of rehab costs and then you can let your team do the rest of the calculations.

Remember, underwriting is an art and a science. Investors need to get good at underwriting to remain competitive on their offers without ever having to overpay for a deal.