Activity
Mon
Wed
Fri
Sun
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Jan
What is this?
Less
More

Memberships

The Real Estate Investing Club

112 members • Free

2 contributions to The Real Estate Investing Club
Underwrite Deals as Quick as Lightning!
Most investors are still underwriting deals the hard way. I’m not. 😄 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 “battle-tested” AI prompt that forces the underwriting to be conservative and buyer-favorable—the way it should be if you actually want to protect your downside and still hit strong returns. ✅ 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: 1. A full internal underwriting report (risk-adjusted assumptions, pro forma NOI, DSCR targets, realistic rent growth, expense inflation, capex reserves, etc.) 2. A buyer-favorable LOI at the suggested price (clean, professional, credible — not some lowball mess) 3. A respectful email to the broker explaining the rationale and asking the 3–5 biggest questions we need answered 🔒 The secret sauce: conservative assumptions Most OMs are optimistic. My prompt automatically “stress tests” 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 don’t use the AI’s 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 prompt… Comment “PROMPT” and I’ll paste it in here (or DM it to you). 👇
0 likes • 16d
PROMPT
0 likes • 4d
@Gabriel Petersen thanks for the offer. I don't have a deal but would still like to go through the underwriting prompt if possible. What do you think, @Adam Morris ?
Learn From My Failures: Don’t chase deals. Ever.
Here’s a lesson I learned again today in real estate investing, and I wanted to share it with you guys — because anything I learn in the field is worth passing along. And honestly, if you guys learn lessons in the field too, PLEASE share them here. It helps all of us. Lesson: Don’t chase deals. Ever. It’s so easy to get emotionally attached to a deal you’re underwriting. You start to like it, you picture it working, you’ve already put in time and effort… and then the seller comes back with a curveball or someone starts outbidding you. When that happens: do not budge from your underwriting. Don’t “just stretch a little.” Don’t start giving away terms you’re not comfortable with. That’s how good deals turn into bad deals. This is fresh for me because I just went through it on an RV park. I made an offer, we negotiated everything, and I sent over the purchase agreement. Then at the last minute they came back and said there was another party who wanted to match my offer… but they were willing to do $30,000 non-refundable. And I’ll be honest — because I’d already put so much effort into it, I got roped in. So I started inching. “Ok fine, I’ll raise the price.” “Ok fine, I’ll do all cash instead of seller financing.” “Ok fine… yada yada yada.” It started turning into one of those situations where you’re negotiating against yourself. The guy I was “competing” with even found my info online and called me trying to guilt trip me — saying I was screwing him over and screwing up his kid’s life because his kid wanted the park. And I’m like… dude, this is business. We both have the right to bid. Then it got crazier: he claimed he’d do $100,000 non-refundable on a smaller RV park AND he'd limit his due diligence period to 14 days… and that was my moment of “Nope. I’m out.” So I backed out. And here’s the wild part: the sellers came back to me afterward because that guy didn’t follow through. So yeah — the lesson I learned (again) through this process is: ✅ Stick to your guns.
Learn From My Failures: Don’t chase deals. Ever.
0 likes • 5d
@Gabriel Petersen 1) So did you regret making any concessions or was it simply the last offer was too crazy?; 2) Did you go through with the deal after all the run around you got?
1-2 of 2
James Engel
1
5points to level up
@james-engel-6835
Camping from the start. A career as an executive in the nonprofit world. Investor in a lot of different assets.

Active 3d ago
Joined Dec 21, 2025
Powered by