CRE UNDERWRITING

• OFF-MARKET deals sourcing

• Demographics Analysis

• Cash Flow Analysis

• Valuation

• Equity Performance Analysis*

• Market CAP rate guidance

• Market & Sub-market Reports

• Waterfall / Participation

• Deal Metrics:

  • Yield on Cost vs Mortgage Constant

  • Cash on Cash

  • IRR vs Equity Multiple

  • Return on Equity

Acquisitions

*Equity Performance Analysis includes:

For asset owners - we analyze the move of your equity from acquisition until now. We calculate the Total Annualized Return and compare it to the current Equity that you’ve built. The Return on Equity throughout the holding period is a key metric that we use to determine if your asset is under-performing or not. We want to be sure that your Equity works in your favor! If not - relocating your built Equity should be appropriate.

For Investors - we project your equity performance considering the target asset aiming to acquire, it’s current financials, projections, market conditions and more. We also include the projected appreciation distributed to the according years of the projected holding period using reverse compound interest for better accuracy.

What ROE do we need? - Considering that for the last 20 years the S&P500 return was approx. 6% and the average commercial real estate return was approx. 8%, you would want to justify your risk with taking mortgage and that combined with the time and equity that you invest, we suggest ROE > 8%.