IC memo depth
The memo now spans 138 Phase 3 modules, including market context overlays, capstone verdicts, risk diagnostics, sector overlays, capital stack recommendations, and print-ready diligence sections.
Current scope | May 2026
Where Underwrite still draws the line.
Underwrite covers a wide underwriting desk: it includes 138 Phase 3 modules, FRED macro context, rent-roll economics, tax overlays, capital-stack diagnostics, and sector-specific diligence screens. This page says where Underwrite stops.
Commercial posture
Free: the worked example, no sign-in. Underwrite Core. $49 per user per month. 30 day trial. Renews monthly until canceled. Cancel anytime. Underwrite Core adds your own deals: reading a document (PDF, Excel or text, a rent roll included), starting and opening any other deal, saving and reopening deals, every Excel export, the IC memo and print of your deals, and share links that open free for whoever you send them to while you have Core. This page explains the diligence boundary in the product, paid or not.
392/392
fixed test set
138
Phase 3 modules
FRED
Macro feed, live when configured
Public
Engine source viewer
Every model is checked against a fixed test set. The same inputs give the same answer.
What changed
The old caveat list is no longer the product.
The engine now covers many of the items that were originally listed as future work. The list below separates what is now modeled from the boundaries that still deserve outside diligence.
Rent roll and leasing economics
Tenant rent rolls, escalators, free rent, TI/LC, rollover downtime, net effective rent, and tenant concentration are modeled, in whole-year lease terms, when the deal carries commercial lease detail. A term the model cannot represent keeps the deal unscored. Included, part-year terms are walked month by month, an unresolved tenant can be scored as vacant instead, and renewal probabilities, expansion and termination options, a re-tenanting reserve for space without a rent roll, and one stated co-tenancy case enter the cash flow. Market leasing assumptions are off unless turned on. Turned on, an expiry blends a renewal and a new lease, and downtime can be counted by month.
Capital stack and maturity risk
Senior debt, optional mezzanine debt, refinance events, rate sensitivity, debt sizing, lender risk, refi-rate risk, and macro-aware structure recommendations are now surfaced. On the senior loan, an interest-only period, a floating rate with an optional cap, and a step-down, yield maintenance or defeasance prepayment cost charged at the sale as its own exit-debt line are modeled when entered.
After-tax and partnership overlays
Depreciation, cost segregation, bonus depreciation, recapture, capital gains, NOL carry-forward, state tax, GP co-invest, sponsor fee drag, and waterfall economics are explicit.
Live macro and Phase 3 context
Treasury curve, SOFR, CPI, inflation expectations, macro regime, bank lending, CMBS spreads, REIT sector read-through, climate, and mandate context sit on top of the model.
Asset-class intelligence
Hotel, office, retail, industrial, multifamily, mixed-use, data center, life sciences, student housing, healthcare, SFR, workforce housing, and other sector screens now have targeted analytics.
Operating execution and cost recovery
Insurance, lease-recovery risk, utility exposure, opex controllability, repair reserves, tax appeal posture, and property-management execution now sit in one operating-risk stack.
Entitlement and site-condition screens
Zoning, parking access, mixed-use conflict, environmental site condition, climate insurance, and redevelopment context are now surfaced as diligence screens with clear non-legal boundaries.
Boundary doctrine
Four levels, one audit trail.
The product is strongest when the page says exactly what kind of answer it is giving. Underwrite separates computed engine output from diligence screens, analyst judgment, and external workstreams.
Calculated
Engine output
The model calculates the metric from the assumptions, market context, or the deal results. These numbers are checked and they repeat.
Flagged
Diligence screen
The memo identifies risk direction, likely review intensity, and questions to ask. These modules help sequence diligence, but they do not replace outside reports.
Reviewed
Analyst judgment
The analyst decides whether the source document, lease language, local practice, or sponsor plan supports the assumption. Underwrite preserves the trail.
External
Specialist workstream
Counsel, environmental consultants, surveyors, lenders, accountants, and paid data vendors still control facts that cannot be inferred from underwriting inputs.
Modeled vs external
A diligence map, not a black box.
current as of May 2026
| Domain | Modeled now | Flagged for review | External control |
|---|---|---|---|
| Insurance | Premium load, deductible shock, carrier renewal risk, placement route, escrow posture, and tenant pass-through risk. | Coverage exclusions, named-peril exposure, lender exception risk, and sponsor-absorbed NOI drag. | Binding quotes, policy forms, carrier appetite, broker market feedback, and lender insurance requirements. |
| Operations | Opex variance, controllability, utility reimbursement, repair reserve shocks, vendor exposure, and property-management execution risk. | Where sponsor leakage could come from recoverability gaps, service complexity, weak cost controls, or underfunded repair obligations. | Executed vendor contracts, operating manuals, property-manager track record, service-level terms, local labor pricing, and asset-specific maintenance plans. |
| Leases | Rent roll economics, escalators, free rent, TI / LC, net effective rent, rollover exposure, and tenant concentration. | Expense recovery leakage, co-tenancy clause language, unusual reimbursement language, and whether the renewal, expansion and termination terms entered match the leases. | Executed lease abstracts, legal interpretation, estoppels, SNDA review, and tenant-specific credit analysis. |
| Entitlement | Zoning posture, density sensitivity, parking relief, nonconforming-use cues, adaptive reuse fit, and likely timing friction. | Where approval risk could change schedule, lender posture, or reserve sizing. | Permitted use confirmation, municipal approvals, title exceptions, code interpretation, and counsel opinions. |
| Environmental | Prior-use screen, Phase II probability, vapor risk, floodplain cues, brownfield reserve sufficiency, and lender escrow read. | Funding gaps, expected delay months, remediation overhang, and reserve coverage weaknesses. | Phase I / Phase II reports, remediation estimates, environmental counsel, agency correspondence, and lender environmental conditions. |
| Market data | Live FRED macro data plus seeded, hybrid, and derived overlays for climate, demographics, and sector demand. | When underwriting relies on proxy data instead of directly licensed market feeds. | Paid comp databases, broker surveys, proprietary rent rolls, appraisal support, and local market interviews. |
| Fund structure | Deal-level after-tax overlays, waterfall economics, sponsor fee drag, GP co-invest, promote yield, and LP suitability. | Where investor-specific tax, side-letter, or fund-level mechanics could change the interpretation. | Partnership tax modeling, audit treatment, REIT compliance, side-letter administration, and fund accounting. |
Still outside scope
Where analyst diligence still controls.
Legal, entitlement, and title review
- The engine does not confirm zoning, permitted use, certificates of occupancy, nonconforming-use continuity, easements, title exceptions, litigation, or municipal approvals.
- A new entitlement screen can flag likely diligence intensity, but counsel and local reports still control the answer.
- Environmental site condition analytics can triage prior-use history, Phase II probability, vapor, floodplain, and timing exposure, but reports, surveys, and lender legal conditions still control the answer.
Third-party market data coverage
- Live FRED data is real and marked with its source. Many private-market overlays still use seeded stand-ins until direct data licenses are in place.
- REIT read-through, demographics, climate, and foreign-capital modules are diligence screens, not paid-data substitutes.
- The page intentionally distinguishes live, hybrid, seeded, and derived signals so users know what is observed and what is modeled.
Construction and heavy redevelopment
- Lease-up, capex yield, construction-cost inflation, climate retrofit, and development sensitivity exist, but Underwrite is not a monthly draw model.
- Hard-cost line items, soft-cost timing, interest reserve, retainage, GMP contract mechanics, change orders, and month-by-month absorption remain outside scope.
- Ground-up development and major repositioning still need a sponsor budget, schedule, and construction lender model beside Underwrite.
Lease-document complexity
- Tenant rent rolls are modeled, but CAM recovery waterfalls, expense stops and percentage rent are not modeled. Co-tenancy, renewal probabilities, expansion rights and termination options are modeled only as the analyst states them; they are not read from the leases.
- The AI parser extracts source quotes, but it does not replace abstracting leases or reviewing executed documents.
- Retail, office, and industrial deals with unusual reimbursement language should still be checked against the source lease files.
Fund, entity, and accounting structure
- The after-tax layer is useful for deal-level economics, but it is not a partnership tax model, audit model, REIT compliance model, or fund waterfall ledger.
- Entity-level debt, side letters, blocker structures, clawbacks, catchups across multiple assets, and investor-specific tax positions remain outside scope.
- Treat tax outputs as an underwriting view, not accounting, tax, or legal advice.
Workflow and governance
- Without sign-in, a saved deal stays in this browser unless you share a link. With Underwrite Core, a deal you save to your account is kept privately on Underwrite's server. Team roles, approval routing, comments, field-level audit logs, and permissioning are not yet enterprise workflow features.
- Compare view and portfolio rollups help with side-by-side analysis, but they do not replace an investment committee system of record.
- Confidential Mode disables AI surfaces, but user organizations still own document-handling, redaction, and data-governance policy.
AI boundaries
- AI can parse broker material, draft executive summary language, and provide qualitative review. It does not compute the return.
- Every figure comes from the model, not from a written review. Review the wording before you send it.
- Source quotes make extraction auditable, but unreadable PDFs, missing rent rolls, or ambiguous IM language still require human diligence.
How to use this page
Underwrite states what it covers, and what it leaves out.
Use Underwrite when you need fast, reviewable deal math with transparent assumptions, macro context, and a memo organized section by section for review. It is built for acquisition screening, lender read-through, sensitivity framing, and investment committee prep.
Use specialist workstreams alongside Underwrite when the answer depends on legal permissions, executed lease language, construction schedule, tax entity structure, or paid private-market data. The best version of the product is honest about that boundary.