Loan/Investment Underwriting Analysis

This section of the report is considered by many to be the most important gathering of information, either to your lender or investor. In the Final Conclusion, after all of the data is entered to develop this report, the analysis is generated instantly. Even so, it is of absolute importance because it is where all of the information regarding the overall efficiency of your loan or investment is located. The input for this report would normally take only a minute or two, depending on the loan type. In the Final Conclusion, each loan or property type has its own distinct input screen used to generate this analysis. This means you do not have to flip coins on what information is needed for any type project. If information is needed - it is requested on the individual input screen.

This report compiles all of the ratios pursuant to the project’s operation. It is here that lenders or investors can analyze the appeal of the project. Certain lines of analysis are naturally more important than others. Some show basic information, such as; gross or net square feet of improvements, debt service or maximum loan potential. However, some lines of analysis are used to indicate whether the project meets proper lending or investing guidelines. These include; breakeven ratios (stabilized occupancy - rent - units, etc.), loan or market value per gross or net square ft. of improvements, potential income of vacancy, cash on cash return or return on investment. Parking ratios (which may indicate the potential success or failure of an office or retail operation) are also addressed. When "shopping" a loan to a potential lender, the answers to questions they ask regarding the project will usually be found in this report. Therefore, it is extremely important that you have these ratios completed prior to presenting your request. Even if you are performing your underwriting analysis manually, you should invest the few hours it would take to complete this individual report. It is that important.