Multifamily Underwriting Process

• offering memorandum

• rent roll

  • Occopancy status and additional info

• T 12

  • Analyses about the last 12 month

• Commercial leases ( if applicable)

• consolidated cleaned up versionof deal information

• Offering overview / deal summary and highlights

• Opportunities to add value

• Size, locaion, zoing, physical site description

• site plan

• market overview

• new development in the area, ob growth, rent growth, vacancy, proximity to employment drivers, area demographics

• rent & sale compareables

• consildated in place rent roll

• financial projections (10 years pro forma) & Assumptions

• Generally does not include list price

  • because they do not want to underprice

• 
  

• List of units

  • Unit number

  • floor plan number

  • bedrooms and bathrooms

  • square footage

  • market rent

  • actual rent

  • move in date

  • lease expiration date

  • deposit amount

  • ancillary charges (Nebenkosten)

—> very important document

• Last 12 month of operating data

• spot normalized operating revenue / expenses

• spot trends or irregulations

• Tell the story of the property

• spot opportunities

  • Decrease expenses

  • Increase occupancy

  • add ancillary income

• base rent escalation schedule

• Lease term

• Future free rent or TI allowance owed

• Operating expnese reimbursment structures

• Option to renew