Feasibility/Underwriting Template

Discussion in 'Investment Strategy' started by MichaelD, 24th Oct, 2019.

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  1. MichaelD

    MichaelD New Member

    Joined:
    24th Oct, 2019
    Posts:
    2
    Location:
    Brisbane
    Hi Folks,

    Quick Question, does anyone know of a existing template (excel) that I can leverage when underwriting new investment opportunities? Essentially I'm looking for it to include things like
    • Market Analysis
    • Rental Analysis
    • Recent Sales History
    • Total Investment Costs (reno, repairs, holding, stamp duty etc...)
    I'd also be interesting in hearing if there is software solutions that can achieve the same result. Please note i'm not referring to things like CoreLogic, rather a template/tool that I can drop my information in to assist with underwriting properties.

    Thanks,
    Mike
     
  2. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
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    Location:
    Sydney
    underwriting ?
     
  3. MichaelD

    MichaelD New Member

    Joined:
    24th Oct, 2019
    Posts:
    2
    Location:
    Brisbane
    Hey,

    Underwriting a property risk. Essentially assessing the risk of the property investment prior to jumping in
     
  4. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    18,438
    Location:
    Sydney
    Strange term. A owner acquires all the benefits and risks of ownership. Some of the matters you may consider are quantitative, other qualitative and others are just...luck and external factors. You cant model and predict everything. Two units in same building can very different due to loads of factors incl tenant, PM, unit size and its costs and how well you and the PM handle issues.

    Every property evaluation is like a sea saw. Some factors are good and others bad and then you have to weight them all up on a balance of probabilities with what is available in your budget All your diligent planning wont fix a dud tenant and no LL insurance or a destructive tenant, termites and a state Govt that wants to build a freeway on your land.

    One of the best financial modelling tool is PIA Software and its called Property Investment Analysis.(PIA) The original Somersoft which led to this very forum. It just models projections etc and assists comparison but is as good or bad as the assumptions. The external data comes from a range of other sources.

    All the best modelling in the world cant predict most things. Past performance doesnt reflect future issues.
     
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