For new investors stepping into commercial real estate, few words spark as much anxiety as underwriting.
The spreadsheets, the jargon, the endless “what-ifs”—it can feel like you need a finance degree just to make sense of a single deal. That intimidation keeps many aspiring investors stuck on the sidelines, second-guessing themselves while opportunities pass by.
But here’s the truth: underwriting doesn’t have to be overwhelming.
At its core, underwriting is simply the process of asking: Does this property make money—and will it continue to? Once you understand the basic building blocks, you don’t need Wall Street-level modeling to evaluate whether a deal is worth pursuing.
As Tyler often reminds his students:
“You don’t have to be perfect—you just need to know what a good deal looks like.”
In this post, we’ll break down a simple framework for underwriting your first commercial deal. By the end, you’ll know how to cut through the noise, focus on what matters, and approach opportunities with confidence.