Detailed Underwriting Feature

DealWorthIt offers a detailed underwriting feature that allows users to perform in-depth analysis of multi-family real estate deals. There are two ways to perform a detailed underwriting using DealWorthIt.

• The first way is to start the detailed underwriting process from scratch. To do this, the user needs to enter the property address to begin. If DealWorthIt is able to find the property information online, it will auto-populate the number of units and display other characteristics of the property. After this, the user can click the continue button to proceed with the detailed underwriting process.

• The second way to perform a detailed underwriting is by converting a quick underwriting report into a detailed underwriting report. To do this, the user needs to open the quick underwriting report they want to convert and click the “CONVERT TO DETAILED UNDERWRITING” button at the top right of the report page. The user will receive a prompt to confirm their action, and if they select “Yes, Proceed” , the report will be converted to a detailed underwriting report. It’s important to note that this process cannot be reversed once completed.

The detailed underwriting section in DealWorthIt has eight tabs, and we will explain each of them below:

1. Overview (This section is divided into two sub-sections)

• Property Information: In the Property Information sub-section, users can view and edit information about the property such as the number of units, unit mix, and square footage.

• Occupancy & Concession: In the Occupancy & Concession sub-section, users can input information about the occupancy rate and any concessions that may affect the property’s income.

2. Income (This section is divided into two sub-sections)

• Rental Income: In the Rental Income sub-section, users can input information about the property’s rental income, including the base rent, market rent, and any concessions.

• Other Income: In the Other Income sub-section, users can input information about any additional income streams such as parking or laundry.

3. Expenses (This section is divided into two sub-sections)

• Operating Expenses: In the Operating Expenses sub-section, users can input information about the property’s operating expenses such as utilities, maintenance, and property management fees.

• Capital Expenditure: In the Capital Expenditure sub-section, users can input information about any major repairs or upgrades that may be required.

4. Reserve (This section is divided into one sub-section)

• Capital Reserve: In this section, users can input information about the amount of capital reserve that may be needed for future repairs or replacements.

5. Acquisition (This section is divided into two sub-sections)

• Loan Information: In the Loan Information sub-section, users can input information about the loan terms such as the loan amount, interest rate, and amortization period.

• Closing Cost: In the Closing Cost sub-section, users can input information about the closing costs associated with the property acquisition.

6. Investors (This section is divided into one sub-section)

• Equity Split: In this section, users can input information about the equity split between the investors and the sponsor.

7. Future (This section is divided into one sub-section)

• Future Profits: In this section, users can input information about the potential future profits of the property based on projected rent growth and other factors.

8. Deal Records (This section is divided into two sub-sections)

• Documents and Notes: In the Documents sub-section, users can upload and view documents related to the property such as inspection reports and title documents. In the Notes sub-section, users can input notes and comments related to the property.

Overall, the detailed underwriting feature in DealWorthIt provides real estate professionals and investors with a comprehensive tool to analyze multi-family real estate deals, helping them make informed investment decision.