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Conservative Underwriting Fundamentals

January 19, 2020

Underwriting is one of the most important aspects of multifamily investing. Proper, conservative underwriting can save an investor from jeopardizing their retirement or career.

Warren Buffet’s “margin for error” – Buffet often explains the key to making a smart investment is to ensure the investment has a sufficient margin for error. This means if some of the assumptions of the investment turn out to be too ambitious, the investment still has the ability to perform and most importantly, avoid a permanent loss of capital.

Conservative Underwriting Means…