I am currently trying to move into an acquisitions role, at an investment firm, and I am teaching myself how to model since I am coming from a non-financial role.
I have been keeping an eye on some job openings and some job specs have the term underwriting in them, eg your role will provide underwriting for their acquisitions (this one in particular is for an investor, not a lender)
Now this confuses me because i always associated underwriting with debt, but does underwriting mean something different in this scenario? A friend of mine who works as an analyst says that in this case, it means being able to "underwrite" factors affecting cash flows in a model.
If this is the case, how is this any different just being able to model/analyse an asset?
Thanks for any help!
In addiition to the above, the term was also used in this post
If your lost by putting assumptions into a model and forecasting cash flows than you have no business in that position. He is asking you to build a proforma to demonstrate that you know how to underwrite an investment and show the projected yields. If you cant do this for a simple single property acquisition in excel, than your going to have alot of trouble when it comes to portfolios and developments. The majority of investment analysts sit at their desk all day looking at deals and this is a pretty straight forward request.
If your serious about this job, I would buy the BIWS real estate modeling course or something off REFM b/c you clearly dont know the basics yet