Real Estate Underwriting Explained (How to Analyze Real Estate)

Real estate underwriting may sound like a foreign concept, but you’ve probably done it before. The act of underwriting is simply another way of saying that you’re analyzing a real estate deal. Underwriting goes a bit more in-depth than regular real estate analysis simply because the deals worth underwriting are usually bigger, better, or a bit more complicated. This is why underwriting is so common in commercial real estate, home flipping, BRRRRing, and real estate development.

Leka Devatha, president of Rehabit Homes, has had to underwrite hundreds of deals. As a fix-and-flipper, Leka needs to know exactly how each step of the real estate investing process will affect her bottom line. Each extra repair, month of holding time, and new property adds a new layer of profit or costs. Through buying so many deals, she’s become an expert at real estate underwriting, and is here to make you one as well!

If you’ve never underwritten a property before, don’t get overwhelmed. Leka will break down how underwriting works step-by-step. In future videos, she’ll be touching on underwriting fix and flips, multifamily properties, BRRRRs, and more! They say you make money when you buy, and with Leka’s help, you’ll be closer to stepping into profits from day one!

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Join BiggerPockets for FREE 👇
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Use the BiggerPockets Rehab Calculator on Your Next Real Estate Deal:
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The Most Important Things I’ve Learned About Underwriting Multifamily Deals:
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A Real Life Example That Proves the Importance of Underwriting Multifamily Numbers:
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Hear Leka on The “BiggerPockets Real Estate Podcast”:
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Connect with Leka on BiggerPockets:
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Follow Leka on Instagram and LinkedIn:

00:00 Real Estate Underwriting 101
00:57 The 4 Factors of Analyzing Real Estate Deals
01:28 Get REALLY Good at Comparing Properties
02:05 House Flipping Deals
02:56 Learn How to Finance Your Deals
03:28 BRRRR Deals
04:21 Wholesale and Multifamily Deals
05:01 The 4 Ways to Finance Your Real Estate Deals
07:22 Got Your Underwriting Down?

#biggerpockets #lekadevatha

[Richbosses]

Omgg!!! You gave me so much info in just under 10 min! This us exactly what I need. I’m looking for the difference between all different kinds of real estate investment and financing! Looking for your next videos

[dr.slavashut]

Analyzing trends in real estate is a great skill to have. Excellent video, keep up the good work

[DiqaunColeman]

Love it! Job well done on this video. Bigger Pockets please please please do not start doing YouTube shorts like everyone else. I hate YouTube shorts. Shorts aka reels have there place, i.e social media, just not for Youtube...

[antoniostephano]

Loved the video for the scope it covered in siuch a concise way. Loved the rules of thumb percentages but some confusion with dlips because no mention of rehab cost and confused by 15% ARV for wholesale.

[sherrie_tullsen_chin]

Any tips on strategies to minimize the tax hit on profits from a flip?

[kastrixa]

Maximum allowable offer should be 70% * ARV - Rehab costs. 65%*ARV for purchase price is assuming every deal rehab will be 10% when you cashout refi at 75% of ARV.

[aryanp]

What are the rules of thumb for single family, townhomes or a condo?

[DavidSkater]

Fabulous video! It’s like everything you need to know about real estate investing in eight minutes. Lol

[oliviern.]

Nice video, it could be better with numbers explained straight on screen..

[StealthyCowbell]

15% of the ARV? Maybe if it's fire damaged? That doesn't make any sense...

[smoothdahustla]

She kinda fine...she gotta man? Lol, jk good video.