Underwriting
topic on 4 shows · 9 statements across 9 episodes
the Paul Morris Podcast 
Capital Allocators 
Top Founders 
20VC
9 statements about Underwriting, every show
Morris: Deals that only work after future rate cuts are bad deals
“That's the good thing, but you've got to underwrite this new purchase at today's rate, not as a hopeful rate. So a deal only works After a future rate cut, that is not a good deal.”
Morris: Never underwrite real estate deals on unannounced rate cuts
“Never underwrite on a rate cut that hasn't happened. That's the difference between data and hope.”
Grefenstette: Peak 2021 market behavior data helps LPs distinguish skill from luck
“It's hard to distinguish luck from skill when everything is up and to the right. But now you can look back and say, okay, what did you do in 20 and 21 and 22? How sensitive were you to these really high valuations? How disciplined were you in deploying the cap…”
Kleinman: Underwriting Quality Determines Credit Performance, Not Public vs Private Structure
“The ultimate performance through the next cycle is going to be more determined based on the quality of the underwriting than was this a private credit fund or a public credit fund?”
DeVeer: Retail Inflows Push Competitors to Loosen Underwriting Discipline
“If they have a big flow quarter in a particular product, we'll see them be very competitive on new underwritings because they have a bunch of cash sitting around that they need to deploy.”
Gerstner: Funding Startup Pivots Requires Entirely New Underwriting
“Will you support me in the pivot of this business or not? But that's a totally new underwriting. That's a different question.”
Heller: Most Cordillera deal underwritings take six to 12 months
“We are not in a bake off or a competitive process where we have to have a deposit down and an LOI down within two weeks. Otherwise we're going to lose a deal. Most of our underwriting takes six to 12 months.”
Rotman: Dismissing founder financial plans as useless is lazy venture underwriting
“I find it lazy underwriting when they say, well, the plan isn't going to happen, so why should I spend time on it? But there's a lot of embedded information that you can pull out of plans by having conversations with the founders and understanding what they ex…”