In this episode of the Ironclad Underwriting Podcast, Jason Williams and co-host Frank Patalano break down one of the most misunderstood documents in commercial real estate: the Letter of Intent (LOI).

They unpack what an LOI is, how it differs from a Purchase and Sale Agreement (PSA), and why, even though it’s not legally binding, you should treat it like it is. From due diligence checklists to earnest money deposits, financing contingencies, and retreading in shifting markets, this episode is a masterclass in protecting both your deal and your reputation.

Topics Covered

• What an LOI really is-and what it’s not
• Key differences between an LOI and a PSA (Purchase & Sale Agreement)
• Why reputation matters more than legal technicalities
• Earnest money deposits: How much to offer and when it goes hard
• Due diligence timelines (30, 60, 90 days?)
• Financing contingencies and reasonable rate protections
• Retrading: When it’s acceptable and when it damages credibility
• “Money hard day one”, risks and market considerations
• Building a comprehensive due diligence checklist
• Lease audits and pet discrepancies
• Insurance loss runs and premium surprises
• Service agreements and auto-renewal traps
• Roof warranties and capital improvements
• Surveys, environmental reports, and title considerations
• LOI expiration dates and protecting your leverage
• Preventing sellers from negotiating with multiple buyers simultaneously
• Real-world examples of costly oversights in underwriting

Notable Quotes

• “Even though an LOI is not legally binding, your offer was accepted based on that. It’s your word. It’s your reputation.”
• “I treat LOIs as if they’re contracts, even though they’re not, because I value my reputation and I want people to value it as well.”

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn

In this episode of Ironclad Underwriting, Jason Williams and co-host Frank wrap up The Cost of Vacancy series by tackling a critical question: when does it make more sense to keep a resident instead of turning a unit? They break down the real math behind renewals, concessions, and turnover costs while sharing real-world stories from managing multifamily properties across multiple markets. The conversation highlights how safety, tenant quality, and strong property management play a major role in retention and long-term cash flow.

Topics Covered

• Retention vs. turnover and how each impacts NOI
• The true cost of vacancy, make-ready, and lost rent
• When below-market rent can be the smarter financial move
• Concessions as a renewal strategy and when they backfire
• Occupancy thresholds and loss of pricing power below 90%
• How bad residents can push good tenants out
• Safety, community, and responsiveness as retention drivers
• Renewal rates, turnover KPIs, and what “healthy” looks like

Quotes

• “The cheapest unit to fill is the one that never went vacant.”
• “You lose almost all of your pricing power when occupancy drops below 90 percent.”

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn

In this episode of the Ironclad Underwriting Podcast, Jason Williams and co-host Frank Patalano break down the true financial impact of concessions in multifamily real estate. As part of their mini-series on the real cost of vacancy, they explain how concessions inflate economic vacancy, quietly erode effective rents, and can wipe millions off a property’s valuation if misused. Through real-world examples, math walkthroughs, and candid asset management stories, they make the case for using concessions sparingly, strategically, and with a clear exit plan.

Topics Covered

• Economic vs. physical vacancy and why concessions widen the gap
• Why two months of free rent equals a ~16% annual rent discount
• How concessions directly reduce NOI and property valuation
• Short-term “burn-off” concessions vs. long-term/perpetual concessions
• Real examples: free rent, TVs, gift cards, waived fees, parking, and internet
• Concession creep and the danger of always running “specials”
• Competitive pressure and how market behavior distorts true market rent
• When concessions make sense (lease-up, distressed occupancy, seasonality)
• How to think about concessions during underwriting and pro forma modeling

Notable Quotes

• “If you give two months free rent, you’re basically giving a 16% discount on the rent for the year.”
• “That $300,000 in lost rent at a six cap is a $5 million hit to your valuation.”

🎧 Connect with Jason:

✅ LinkedIn

✅ https://IroncladUnderwriting.com

✅Linktree

🎧 Connect with Frank:

✅LinkedIn