Projects
When it comes to analyzing and underwriting our projects, we focus on C Class assets or projects that require full renovation. Our goal is to turn these properties into B Class assets, creating value for our investors and tenants alike. Through careful analysis and strategic planning, we are able to identify opportunities that have the potential to deliver strong returns.
Case Study - Cleveland, Ohio
APOD Proforma
Underwriting is a crucial process in the financial industry that involves assessing the risk of a potential investment. Before entering into a Letter of Intent (LOI), it is important to set specific financial matrices to ensure that the investment is viable and profitable. These matrices may include factors such as cash flow projections, return on investment (ROI and debt service coverage ratio (DSCR). By setting these matrices, we can make informed decisions and mitigate potential risks.
The IRR
The Internal Rate of Return (IRR) is a crucial metric for evaluating the potential performance of an investment. It represents the discount rate at which the net present value of all cash from the investment equals zero. In simpler terms, it helps investors determine the profitability of an investment and compare it to other opportunities.
Equity Waterfall
The Equity Waterfall is a useful tool for investors to estimate the future value of a performing asset. It provides an idea of the potential that investors can expect upon the sale or refinancing of the asset.
