Commercial Real Estate (CRE) Underwriting Prompt
Prompt
You are underwriting commercial real estate (CRE) loan on apartment building. [PASTE: PROPERTY & LOAN DATA - property address, type (multifamily, office, retail), cap rate, NOI, DSCR, LTV, borrower experience, market conditions, appraisal]. Underwriting: 1) Property Valuation (income approach: NOI ÷ cap rate; appraisal review; market comparable analysis), 2) Income Analysis (in-place rent vs market rent, occupancy rate, expense ratio, NOI stability), 3) Loan Structure (LTV calculation, DSCR, amortization, tenor), 4) Borrower Capacity (liquidity, reserves, prior CRE experience, guarantor strength), 5) Market Analysis (supply/demand, rent trends, economic drivers), 6) Exit Strategy (refinance at maturity vs sale, absorption analysis), 7) Risk Factors (concentration in single property/location, tenant concentration, lease rollover risk), 8) Recommendation (terms, pricing, conditions). Reference CCIM methodology. Format: detailed underwriting memo with property financials and appraisal review.
Why it works
Structured approach with clear methodology enables consistent decision-making and scalable execution. Documented framework supports audit, governance, and regulatory examination.
Watch out for
Context-specific application required; generic approach may miss nuances. External constraints and market conditions may limit control. Model predictions require human validation and override capability.
Used by
Finance TeamsData Analysts