CRE Underwriting

Provide rent roll data, operating expenses, inspection findings, market data, and deal terms. The Financial Model Builder constructs the income waterfall from gross potential rent through NOI, projects years 2-5 with growth assumptions, and calculates debt service and return metrics.

The Scenario Analyst runs 27 permutations varying rent growth, expense growth, and exit cap rate across downside, base, and upside states. It outputs probability-weighted IRR and equity multiple, stress test failures, and a sensitivity ranking of which variable most impacts returns.

The suite calculates in-place and stabilized cap rate, DSCR, cash-on-cash, debt yield, 5-year IRR, and equity multiple. Each metric is compared against investment thresholds with PASS, FAIL, or MARGINAL status flags.

Required inputs include rent roll with in-place rents and occupancy, operating expense line items, physical inspection CapEx schedule, market rents and vacancy, and deal terms such as purchase price, LTV, interest rate, and exit cap rate. Missing data triggers conservative benchmark-based fallbacks with uncertainty flags.

The skill notes the gap explicitly, substitutes conservative industry benchmarks from its knowledge bases, and marks every estimated value in uncertainty_flags. Analysis continues with a reduced confidence score of MEDIUM or LOW rather than stopping.

Results carry LOW confidence when multiple due diligence sources are missing or significant assumptions are required. Negative NOI, DSCR below 0.80, or unresolved environmental and title issues are flagged as critical dealbreakers requiring human review.