Most investors are still underwriting deals the hard way.
Iโm not. ๐
Lately, when I get an Offering Memorandum (OM) for a self-storage facility, mobile home park, RV park (and sometimes multi-tenant industrial or multifamily), I run it through a single โbattle-testedโ AI prompt that forces the underwriting to be conservative and buyer-favorableโthe way it should be if you actually want to protect your downside and still hit strong returns.
โ
What this prompt does (in plain English)
It tells the AI to act like a seasoned commercial underwriter + transaction specialist and produce exactly 3 deliverables:
- A full internal underwriting report (risk-adjusted assumptions, pro forma NOI, DSCR targets, realistic rent growth, expense inflation, capex reserves, etc.)
- A buyer-favorable LOI at the suggested price (clean, professional, credible โ not some lowball mess)
- A respectful email to the broker explaining the rationale and asking the 3โ5 biggest questions we need answered
๐ The secret sauce: conservative assumptions
Most OMs are optimistic. My prompt automatically โstress testsโ the deal by default, like:
- bumping expenses
- limiting rent growth
- baking in vacancy
- adding real capex/reserves
- using higher exit cap rates than the OM wants you to believe
In other words: it underwrites like a buyer who plans to own the asset through real-world problems, not spreadsheet fantasy land.
Why this matters
Even if you donโt use the AIโs numbers verbatim, it gives you:
- a fast first-pass underwriting
- a negotiation-ready offer package
- a broker email that keeps relationships strong (while still being firm on price)
If you want the exact promptโฆ
Comment โPROMPTโ and Iโll paste it in here (or DM it to you). ๐