Real Estate Underwriting

Real estate underwriting is a process that helps investors figure out the actual value of a property once it is ready to be sold. Real estate underwriters are professionals who deeply analyze various factors and costs involved in making a property ready to sell. They do it by considering the present value of the property, costs of repair and maintenance, and analyzing the future value.

What Do We Do?

Our team of real estate underwriters helps people who want to invest in a property with minimum risks. We will thoroughly research and analyze the potential property for our clients considering all current and future factors. Our services will help you decide whether or not a property would sell on a profit after purchasing, repairs, and maintenance.

Our residential and commercial real estate underwriting experts utilize the property details, along with some other factors, for determining if the investor should make a purchase. We will make sure that your money is not been spent on a property that may sell without giving you any profit in the future.

Factors We Consider

During the process of real estate underwriting, we consider a few key factors for determining the potential investment’s strength. The risk will be low if these conditions are met:

Rent Growth

We consider the present rental amount of the potential property and other influencing factors that can affect the property’s rental price in the future. It may include the economy and seasonal trends of the market as well as the area’s job growth that impacts the rental market’s demand and supply.

Vacancy Rate

Likewise, the property’s vacancy rate is also an essential factor that we thoroughly check. The vacancy rate of a single-family unit will be 100% between a renter moving out, maintenance being done, and the new renter occupying this property. But if it is a multifamily unit, it will still keep generating rent from the property’s other tenants.

Cash Flow Prediction

The vacancy rate and rent growth inform the property underwriting expert of the property’s cash flow. The net cash flow of the property will consider the amount of money the property will be subtracting and generating and costs linked with maintenance and repairs. The investment risk will be lower if the net cash flow is higher.

Potential Returns

During the real estate underwriting process, our team of commercial real estate underwriting experts will consider the potential ROI on the investment property. We will evaluate the property thoroughly to determine whether or not it will be a beneficial deal.

Want to Know More?

If you want to know more about our real estate underwriting services you can reach out to us by filling up the below form or by talking to us over a phone call.