Blind Spots in Underwriting Models: Why Numbers Alone Can’t Save You

Overview

In this episode of the Ironclad Underwriting Podcast, Jason Williams and his business partner Frank Patalano tackle one of the biggest red flags in real estate underwriting, blindly plugging numbers into models without understanding what they mean. From overwritten formulas to unrealistic rent projections, Jason and Frank break down common mistakes they see investors and analysts make, and how these errors can cost deals, returns, and credibility. Whether you’re building your first model or reviewing your tenth, this episode will sharpen your eye for detail and help you spot the traps before they derail your underwriting.

Topics Covered

• Why blindly entering numbers into spreadsheets creates hidden risks

• Common pitfalls with rent premiums, occupancy rates, and renovation timelines

• Insurance and tax assumptions that can make or break a deal

• Loan-to-value (LTV) misconceptions in today’s lending environment

• The gap between gross scheduled rent and effective gross income

• How limited partners (LPs) often misinterpret projected returns

Quotes

✅“My red flag is just blindly putting numbers into a model, if you don’t understand how it’s calculated or how it affects your returns, you’re flying blind.”

✅“I’ve seen clients double dip, even triple dip on rent premiums, taking a property from $850 to $1,300 overnight. That’s not just unrealistic, it’s dangerous.”

✅“You can’t be blind on taxes. If you don’t plan for reassessment increases before you close, you’re stuck, and the county will take your property if you can’t pay.”

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn