How many deals are you guys underwriting per week?
I’m talking about full underwrites, not any sort of basic analysis/back-of-the-napkin valuation.
I’m cranking out about 10-15 a week, full underwrites with a moderate depth of analysis. Obviously the volume of deals we actually close on are much much lower.
My prior experience was in brokerage and this is my first buy-side role so I am curious on what everyone else is currently working on in terms of volume and product. For context I’m in the Self-Storage biz.
Current debt brokerage analyst. Curious as well
Do you acquisition guys just do this for market data even if you know most won't pencil?
Yes bigmonkey, they do.
thanks PEREmonkey
Would love to know for people in different asset types
I entered the industry 2 years ago- what was a normal amount of underwriting per week to be considered "good deal flow"
Let's say for firms looking at deals over $50mm
Curious as well, have been at smaller shops and family offices, over the last year+ have not done full UW on many deals in Analyst level capacity with many Associates/VPs above me. The associates were handling most of it, these were also intern level roles while in grad school, but did maybe three full UWs of looking into the market, comps, UW with each of us handling different aspects.
Very, very slow and honestly have not learned much over the last year and a half in these roles. Very disorganized processes and no real teaching.
depends what a “full” UW is. We keep it simple for multi so I can get through a deal in no time, however I’m not really thinking too hard about the assumptions, that’s for my MD. I’ll run every deal that hits the market that so we can have comps. So amount just depends on what gets launched.
However almost never underwrite commercial or development deals anymore. Getting extremely rusty there and in ARGUS which I don’t love.
For me our model automates quite a lot of the CF modeling, and a full UW would be choosing relevant comps, pulling demographic data, going somewhat in depth of relevant comps and how they hold up to what we are targeting in terms of quality, where they pull tenants, etc. And then putting thought into how we would want our assumptions to look and why (ex. Capping our stabilized occupancy lower than what we usually have in more popular markets, seeing where we think rates will price, etc). While there is room to get more granular, personally I think I would consider this pretty in depth as there are usually a decent amount of assumptions to put thought into per deal.
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