The Modern Deal Analysis Framework
Underwriting real estate requires a systematic 4-phase audit to ensure capital preservation and predictable cash flow:
- Phase 1: Quick Triage (The 1% Rule & Gross Rent Multiplier): Screening 100 properties down to the top 5 promising candidates.
- Phase 2: Cash Flow & Expense Verification: Auditing true property tax rates, insurance, property management (8–10%), and capital expenditure reserves (5–10%).
- Phase 3: Environmental & Municipal Risk Audit: Checking FEMA flood risk, permit histories, and zoning restrictions.
- Phase 4: Multi-Scenario Stress Testing: Modeling Bull, Likely, and Bear macroeconomic outcomes using Monte Carlo simulations.
Learn more about our institutional methodology at Haven's Analysis Methodology.
