Keywords

passive investing, underwriting, commercial real estate, investor capital, deal evaluation, transparency, risk management, stress testing, red flags, fiduciary responsibility

Summary

In this episode, Deborah Myers and Sean McCrory discuss the critical aspects of passive investing in commercial real estate, focusing on the role of underwriting, the importance of transparency, and the evaluation of deals. Sean shares his background and insights into how deals are assessed, the significance of stress testing assumptions, and the red flags to watch for in potential investments. The conversation emphasizes the need for a conservative approach to underwriting to protect investor capital and build trust in the investment process.

Takeaways

An underwriter is essential for evaluating the feasibility of a deal.
Stress testing assumptions helps identify potential deal-breaking scenarios.
Aggressive assumptions in pro formas can indicate risk.
Transparency is crucial for building trust with investors.
Fiduciary responsibility means prioritizing capital protection.
Real-world examples illustrate the importance of conservative underwriting.
Education should precede investment decisions.
Identifying red flags can prevent costly mistakes.
Effective communication is key in investor relations.
Building a strong relationship with investors fosters long-term success.

Titles

The Art of Underwriting in Passive Investing
Navigating Commercial Real Estate Deals

Sound Bites

"Losing investors' money is unforgivable."
"You put good in to get good out."
"I want to earn your trust."

Chapters

00:00 Introduction to Passive Investing and Underwriting
02:12 Understanding the Role of an Underwriter
03:59 Evaluating Deals: Initial Considerations
07:12 Stress Testing Assumptions in Real Estate
10:17 Real-World Examples of Conservative Underwriting
13:38 Fiduciary Responsibility and Transparency in Investing