One run, one memo
IC memo template
A committee memo is the deal, said once, in an order a room can follow. I got tired of pasting model output into a document that then disagreed with the model. Underwrite writes the memo from the same run as the plate.
What this template is
The template is the chapter list the product writes when it runs a deal. The executive summary carries the plate. The property, the rent roll summary, the sources and uses, the returns, the debt, and the operating projections all read the same figures.
On Cayuga Commons (Illustrative Case) that plate is year 1 NOI $594,066.40, project IRR 15.34%, equity multiple 2.4351x, minimum DSCR 1.46x, verdict PURSUE. The price is $8,500,000. Equity in the deal is $3,200,250. The loan is $5,525,000.
- Purchase price
- $8,500,000
- Year 1 NOI
- $594,066.40
- Going-in cap rate
- 6.99%
- Project IRR
- 15.34%
- Equity multiple
- 2.4351x
- Minimum DSCR
- 1.46x
- Verdict
- PURSUE
Chapters in the worked example
This is the order the memo uses. The PDF of this one memo is free on the deal pack page. Opening the memo on the desk is free for this deal. The workbook of your own deal is part of Underwrite Core.
- Executive summary
- Investment thesis
- Property
- Rent roll summary
- Market
- Business plan
- Sources and uses
- Returns
- Equity bridge
- Scenarios
- Debt
- Debt by year
- Operating projections
- Trailing twelve months
- Sensitivity and downside
- Truth Score
- Key risks and responses
- The ask
- Conditions to close
- Diligence
- Disclaimers
What the memo does not do
PURSUE means the engine's rule cleared: the IRR can be computed, minimum DSCR is at or above 1.00x, and IRR clears the hurdle. PASS means the rule did not clear. A room can still disagree when an assumption is wrong.
The memo is the model, written down, so the room and the workbook are the same document. It is not a filing, and it is not legal, tax, or lending advice.
Frequently asked questions
What is in the template?
The chapter list the worked example's memo uses, from the executive summary through the disclaimers. The plate is the engine's: PURSUE, year 1 NOI $594,066.40, project IRR 15.34%, equity multiple 2.4351x, minimum DSCR 1.46x.
Can I download the memo?
The PDF of the Cayuga Commons (Illustrative Case) memo is free on the deal pack page. The workbook of your own deal is part of Underwrite Core.
Does the memo use different math than the desk?
No. One run writes the plate and the memo. If you change an input, both move.
Is this a legal form?
No. It is the memo the product writes from the model. It is not a filing, and it is not advice.