"The Buyer has need of a hundred eyes:
the Seller of buy one".
- Proverbs

Our underwriting helps protect our client from overly optimistic Selling Brokers and property owners who often overstate projected income and understate projected operating expenses and replacements. They often show below market vacancy rates and concessions, above market rental rates and project operating expenses and replacements based on rules of thumb which ignore the property's age, density, renter profile, mix of units, etc. In essence, we become our client's first line of defense when dealing with properties for sale.

Our five-page underwriting analysis shows our client what is realistic to expect in the way of returns as opposed to what the Selling Brokers and property owners would like our client to believe.

Finally, during the underwriting process we look at various value-added components which can positively impact the client's net operating income. For example, we consider implementing RUBS, location rental premiums, net operating income enhancing investments such as washers/dryers or security gates. These value-added alternatives often make a "so-so" deal into a good deal. The existing owner often times can not see nor can afford the options available to give the net operating income a strong shot in the arm.

If you would like to review the specific steps in our underwriting sequence, click here.