The Right Way to Use an Underwriting Model with Dr. Jason L. Williams, Ep. 705

Dr. Jason Williams is the founder and CEO of Ironclad Underwriting, where he helps investors simplify and strengthen multifamily deal analysis. With a background as a PhD-level chemical engineer, Jason brings a systems-based approach to underwriting, having transitioned from single-family rentals to large-scale multifamily syndications. He now teaches investors how to build smarter models, avoid costly assumptions, and raise their underwriting IQ.

Make sure to download our free guide, 7 Questions Every Passive Investor Should Ask, here.

Key Takeaways

• Jason transitioned from engineering to real estate, bringing over 15 years of data analysis experience into underwriting.

• Many investors make critical underwriting mistakes by misunderstanding Excel models or relying too heavily on templates without verification.

• His Ironclad Underwriting model is built for flexibility and clarity, especially helpful when dealing with creative financing. He emphasizes third-party validation for all assumptions—especially from stakeholders who will be executing the plan.

• Property management can make or break a deal. Vet thoroughly and don’t underestimate their impact.

Topics

From PhD to Real Estate Pro

• Jason started investing in 2003 while in grad school and held rentals throughout his career.

• In 2017, he discovered syndications through Joe Fairless and began scaling into larger multifamily deals.

• After being laid off, he used the opportunity to go full-time into real estate.

Underwriting with Precision

• Took his R&D background to build underwriting models that minimize user error and reduce complexity.

• Developed Ironclad Underwriting to “dumb down” deal data without compromising accuracy.

• Emphasizes that many common models can be broken easily—triple dipping rent bumps, broken formulas, or overwritten cells.

Common Mistakes Investors Make

• Trusting broker/owner numbers without verification.

• Over-projecting rent growth based on temporary trends.

• Blindly following a coach or a guru’s assumptions without understanding the logic.

• Using inherited underwriting models that have dead or disconnected cells.

How to Use an Underwriting Model the Right Way

• Breaks rent data into: current, property management estimate, and pro forma rent.

• Encourages using third-party consultants for accurate insurance, taxes, and property management costs.

• Property managers must be part of the business plan validation process.

Navigating the Market Cycle

• Expects a wave of opportunities as more owners face distress or pre-foreclosure.

• Believes creative financing will play a larger role—models must be able to handle these deal structures.

• Warns that relying on outdated assumptions or models not built for flexibility can lead to catastrophic results.

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Round of Insights

Failure that set him up for success: Moved a trusted onsite team to a struggling property and watched occupancy plummet. Realized they were covering for major issues and fired them. A new regional manager brought the property from 76% to 93% occupancy in just six weeks.

Digital or mobile resource: IroncladUnderwriting.com – Includes a two-minute yield calculator, terminology library, and underwriting masterclass.

Book recommendation: Who Not How and 10x is Easier Than 2x by Dan Sullivan and Dr. Benjamin Hardy – foundational for focusing on strengths and building the right team.

Daily habit: Gratitude journaling—although not daily yet, he uses it to stay positive and focused on what matters.

#1 insight for underwriting multifamily deals: Get third-party verification from stakeholders who have a vested interest in seeing the deal succeed.

Favorite restaurant in Wichita Falls, TX: Bricktown Brewery.

Next Steps

• Visit IroncladUnderwriting.com/masterclass for free training

• Use Jason’s free calculators and templates to improve your deal analysis

• Stay vigilant about assumptions, data inputs, and the functionality of your underwriting model

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