Tabletop underwriting and the 5 data points!

[Fletcher Clardy]

I was working on a tabletop underwriting for a multi-family asset. While searching through the OM (offering Memorandum) for 5 data points (NOI, pro forma NOI, sources/uses, debt, exit strategy) I was only able to identify, NOI, and pro forma NOI. This particular OM had no sources & uses listed, no description of debt used, and had no exit strategy.

I can assume the sources and uses based on the financials, I still would have liked to see more detail on the debt and the planned exit strategy.

I would like to know how the audience performs a tabletop underwriting?

What strategies do you implement when performing a tabletop underwriting? 

What is important to you when identifying sources and uses? 

What key data points and what other information are you expecting to find in an offering memorandum?

Fletcher Clardy III 

Clarity Equity Group 

[Greg Dickerson]

Originally posted by @Fletcher Clardy:

I was working on a tabletop underwriting for a multi-family asset. While searching through the OM (offering Memorandum) for 5 data points (NOI, pro forma NOI, sources/uses, debt, exit strategy) I was only able to identify, NOI, and pro forma NOI. This particular OM had no sources & uses listed, no description of debt used, and had no exit strategy.

I can assume the sources and uses based on the financials, I still would have liked to see more detail on the debt and the planned exit strategy.

I would like to know how the audience performs a tabletop underwriting?

What strategies do you implement when performing a tabletop underwriting? 

What is important to you when identifying sources and uses? 

What key data points and what other information are you expecting to find in an offering memorandum?

Fletcher Clardy III 

Clarity Equity Group 

I look at all the actual financials an FM run worst case and best case scenarios. I take. Actual not proforma Gross income minus all expenses including economic vacancy and CapX reserves to determine real NOI. I then determine if there is enough cash to service the debt and equity returns and go from there.