One thing I’ve seen repeatedly is that most underwriting mistakes aren’t spreadsheet errors - they’re assumption errors that go unchallenged.A few that tend to show up only after someone has been burned once:• Treating in-place performance as “temporarily bad” instead of asking why it exists and whether it’s actually durable• Assuming value-add execution speed without factoring in operational drag, leasing friction, or human error• Believing future upside will be underwritten the same way current income is - it rarely is• Underestimating how aggressively lenders normalize expenses, reserves, taxes, and insurance compared to investor models• Thinking a strong sponsor or guarantor can compensate for weak cash flow under stressAnother big one is timing.

The existing facility should only take up 2 acres. 

It feels high because it’s percentage-based instead of flat.A few things to check before walking away:• How much of that is true bank points vs third-party costs• Whether the rate is below market (fees sometimes replace rate)• If this is a relationship bank pricing model vs transactionalAlternatives can exist (credit unions, SBA, non-bank lenders), but they usually trade lower fees for higher rates or tighter terms.

Buy with seller financing with sweetheart terms ( assumable, 0% interest rate Seller Financed Note) and sell wrap note higher interest and or higher price for providing financing to buyers who would not qualify for conventional loansSell a property with an existing low interest mortgage utilizing a mortgage wrap.

i have been in a tough financial state starting 2025. i committed to a bad fix and flip and lost tens of thousands of dollars.

Infill lots, minor subdivisions, or land with existing frontage and utilities will teach you more than any underwriting model.Also worth noting: lenders and equity partners don’t underwrite first-time developers on vision.

This actually adds you to the vendors insurance policy, whereas an insurance certificate only provides proof that coverage exists.

In Bergen County, those properties exist and most sellers have no idea their loan is a selling point.

They told me that ADU is less than 500 sq ft and that a permit is not required, on the existing survey is not there so title company is asking for a new oneAlso I am currently focusing on 2-4 units since I am planning on using my fha loan and house hackthe zip code is 79903 

I'd like to see the whole deal broken down from start to finish'.I would want to see that before I even commit to a meeting.Beyond that, do wider due diligence on all parties involved.