I used to underwrite deals just based on gut feeling and a quick napkin math, but after I got burned on a $450K mixed-use property in Denver back in 2019 I now run every number through a DSCR model before I even call the broker.

What changed for you guys when you started getting serious about deal analysis, was it a specific loss or did you just gradually get more careful over time?

2 comments

2 Comments

ward.fiona1d ago

Heard a seasoned investor say that gut feelings are just pattern recognition until they're not.

wright.michael1d ago

@ward.fiona hit it right - gut feelings are just your brain lying about past wins until a big loss shows up. Same thing happened to me on a duplex in Phoenix, thought I had it all figured out until the numbers told me I was 80K in the hole.