📖 Episode Overview

In this episode, Jason and Frank pull back the curtain on the most manipulated areas of underwriting: revenue assumptions and operating expenses.

They explore how pro formas can be engineered to look too good to be true, and how savvy investors can spot the red flags. From market rent games to unrealistic expense ratios, they break down what ethical underwriting really looks like in today’s market.

📌 Topics Covered

✅ Differences between market rent, in-place rent, and effective rent

✅ Revenue assumptions: Loss to Lease, Economic Vacancy, Other Income

✅ Underwriting manipulation: common tactics used by “bad actors”

✅ Expense benchmarks and what’s actually reasonable

✅ Operating expense ratios: understanding when numbers don’t add up

✅ How investors should challenge and verify assumptions

✅ Knowing when a pro forma is too good to be true

💬 Key Quotes

✅ “Revenue is the most commonly manipulated line item in underwriting—and the easiest to hide.”

— Frank Patalano

✅ “If your model shows a 35% expense ratio on a multifamily deal, you better have a really good story.”

— Jason Williams

✅ “Good underwriting is about creating a model that can fail gracefully—not just look great on paper.”

— Jason Williams

📚 Resources Mentioned

✅ NMHC Income & Expense Survey – industry-standard benchmarks for multifamily OPEX

✅ IRR Matrix Reports – cap rates, NOI, and return assumptions by market

✅ T12 & Rent Roll Deep Dive – tips for extracting truth from seller financials

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn

🔍 Episode Overview:

Welcome to the inaugural episode of Ironclad Underwriting! In this episode, Jason and Frank introduce themselves, share their real estate journeys, and set the stage for what listeners can expect from the podcast.

From underwriting principles to building generational wealth and navigating market risks, this conversation lays the foundation for future deep dives into the world of commercial real estate underwriting.

🗣️ Topics Covered:

✅ The "Get Rich Slow" mindset in real estate

✅ Jason’s background as an R&D engineer turned real estate investor

✅ Transition from single-family to multifamily investing and apartment syndications

✅ Building wealth with purpose: caring for family with special needs

✅ Frank’s journey from schoolteacher to full-time investor

✅ Control and flexibility in real estate vs. stock market investing

✅ Benefits and risks of syndications and joint ventures

✅ Lessons from real-world underwriting and deal performance

✅ The importance of who is operating the deal

✅ Market risks: Interest rates, insurance, taxes, and operator execution

✅ Portfolio diversification: Real estate, oil, wineries, stock market

✅ Underwriting as a tool for risk mitigation and long-term success

✅ Plans for future episodes: Expert guests from lending, insurance, tax, and more

🎙️ Key Quotes:

🗨️ “Real estate is not a get-rich-quick scheme. The goal is to get rich slow and do well.”

🗨️ “Underwriting helps you be proactive, not just reactive.”

🗨️ “Who’s operating the deal is as important as the numbers themselves.”

🔗 Resources & Mentions:

https://IroncladUnderwriting.com

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn