Underwriting

One shared model for the entire deal.

Build the full underwriting from the source documents, including sources and uses, income and expense reconciliation, debt sizing, acquisition costs, exit assumptions, sensitivities, and the LP/GP waterfall. Every deal has one auto-saved model that stays tied to the current numbers.

app.firmsource.com · Underwriting · Wexley Commonsauto-saved
Price$13.9MExit cap6.25%Hold5 yrLTV68%Rent growth3%Loan $9.5M · equity $5.1M · sizes on DSCR
AssumptionsSummaryIncomeExpensesRent rollAcq CostsDebtPro formaExitSensitivityWaterfall
Sources & usestotal $14,580,000
Purchase price $13,900,000
Down payment 32%$4,400,000
1st mortgage DSCR-bound$9,500,000
Acquisition fee 1.5%$208,500
Closing + reserve itemized$471,500
Total equity to close $5,080,000
Year 1 · income & expensesNOI $820,000
Gross potential rent $1,568,000
Less vacancy 5%($78,400)
Effective gross income $1,490,000
Operating expenses 45% EGI($670,500)
Net operating income $820,000
Less debt service ($612,000)
Cash flow after debt $208,000
14.6%
Levered IRR
5.0%
Avg CoC
5.90%
Going-in cap
1.34×
Yr-1 DSCR
8.6%
Debt yield
6 / 6
Hurdles
Investor returns90% LP / 10% GP · 8% pref · 30% promote · 5-yr
LP · 90%
GP
PartnerIRRMultAvg CoC
Limited partners12.9%1.78×4.9%
General partner23.6%2.71×3.0%
11 tabs
one shared model
16.4%
example levered IRR
1.30×
year-one DSCR
Auto-saved
always current
What's inside the model

Full underwriting, not a surface-level summary.

01

Sources & uses

Build the purchase price, financing, acquisition fee, closing costs, reserves, and total equity to close in one itemized view.

02

Income reconciliation

Reconcile the OM, T-12, rent roll, and P&L so income and expenses are normalized to the source documents.

03

Debt sizing

Size debt against the binding constraint, including LTV, DSCR, or debt yield, instead of relying on a rounded loan amount.

04

Acquisition costs & exit

Model closing costs, reserves, sale assumptions, and cash-out refinance scenarios to see how each case affects returns.

05

Sensitivity

Test exit cap, rent premium, and other key assumptions across a sensitivity grid so the team sees the range, not just the base case.

06

Full waterfall

Compute the preferred return, return of capital, promote, and LP/GP economics from the same deal model.

What it feeds

The model becomes the committee package.

Underwriting does not stop at the model. FirmSource Intelligence turns the live underwriting into an IC-ready memo, so the conviction call, scenarios, sensitivities, and risks all come from the same numbers your team built.

  • IC memo written from the live model
  • Scenarios and sensitivities stay in sync
  • No re-keying between underwriting and the memo
FirmSource Intelligence· IC memo · The MonroeConcept
Pursue
Fund the $10.6M equity — target 1.72× / 12.4% IRR.
The Monroe · 164 units · Atlanta, GA · $35.2M · high conviction · 6 / 6 gates clear

A value-add B+ in a growth submarket. The going-in cap clears the box at a verified 5.6%, debt covers at 1.34× DSCR, and the reno-premium math holds even in the downside — the binding constraint is exit-cap risk, stressed below.

Downside
8.1%
1.41× EM
Base
12.4%
1.72× EM
Upside
17.9%
2.14× EM
Sensitivity · IRRexit cap × rent premium
$140
$160
$180
6.10%
8.1
9.6
11.1
5.85%
10.9
12.4
14.0
5.60%
13.9
15.6
17.3
Risks & mitigants
Reno pace (~12 units/mo)→staged draw · break clause at 60% leased
Exit-cap widening→25 bp = ±150 bps IRR · downside holds at 8.1%
Tax reassessment→modeled at the post-sale assessment, not in-place
Kills the deal:Rents verify < $140 premExit cap > 6.25%Reno > $10K/unit
Explore the platform

Institutional underwriting, built for lean teams.

Rebuild every deal from the source documents, normalize the financials, size the debt, test the exit, and produce the analysis your team needs before IC, without adding another analyst layer.

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