Underwriting

Strategic Evaluation

Due Dilligence

Management

Commercial Underwriting

The basic purpose of underwriting is to determine the risk and return on an investment. And if you're interested in any type of commercial property—multi-family units or leasable commercial space—the details matter. Getting the details wrong will cost you money and can sink a deal.

How We Determine Risk and Return

We spend time looking at past building history, documentation, and local comps. We get feet on the ground to see the property and neighborhood. We also engage consultants to do market analysis and niche expertise analysis. We spend the time going through every document. Every existing lease. Every report. We do the work.

We are a professional, total property management company.

We take all that information and use financial modeling to see your projected cash flow. We use an industry standard formula to determine Net Operating Income (NOI).

gross potential income - operating expenses - vacancy allowances = NOI

Property Value = NOI/capitalization rate

We give you the information to make the decision that is right for you.

Commercial Underwriting & New Developments

Underwriting becomes more complex when you're looking at new developments. This is because most financing deals need two-three years of cash flow projections. And city permitting requires an accurate budget and timeline.

Putting together accurate budgets and timelines on an undeveloped space requires specific knowledge. Knowledge that an investor may not have. We don't expect investors to know the cost of connecting a new property to city utilities, the cost of each step the planning and construction process, and how long it will take to actually get a tenant in the building.

Fairmont Underwriting

Underwriting your property—whether you're looking at working with a bank rep to apply for financing or using investor capitol—is complicated. Small errors, missing expenses, or not understanding a process will cost you money. Our experienced, professional staff will save you money, time, and stress.

Strategic Evaluation

Commercial real estate investment is a big investment. So, whether you're looking at new purchases or changing property managers, we provide a strategic evaluation.

Our Evaluation Process

Much like the beginning of the underwriting process, we look at your expected costs. That can include purchase cost, expected expenses like payroll and maintenance, and renovation or value-add costs. We also look at the local market, lease and rental pricing, and projected profits. All this lets us make a recommendation on moving forward with a deal or changes to make to an existing management set up.

We provide commercial real estate development and management company services.

Due Diligence

The due diligence period in any property transaction is important. If you're making a financial investment, it's crucial. As part of our full-service property management offerings, we do due diligence works for clients.

What is Due Diligence?

The due diligence period is a part of the sale/closing process for commercial real estate. Normally, this period of 30-60 days starts after an offer was made and accepted, but before closing. Due diligence is the buyer's chance to do deep research and make sure that the deal is sound. Fairmont works with clients to look at any red flags and resolve any discoveries that change the closing price.

We cover the following areas of due diligence:

Environmental Due Diligence
  • Provide environmental site assessments and testing—necessary for new developments and builds
Financial Due Diligence
  • Auditing current leases for irregularities or needed changes
  • Auditing service contracts to save you money—this may include utility and maintenance provider
  • Cost analysis that looks at historic operating costs and expected expenses
  • Rent roll analysis to determine upcoming unit vacancies
Legal Due Diligence
  • Title research to make sure all property titles are clear from ownership claims and liens
  • Updated survey reports to make sure stated property boundaries are accurate
Physical Due Diligence
  • Create a renovation or development budget based on existing structure and client needs
  • Coordinate an updated appraisal for accurate value
  • Put actual eyes on the property to check the current condition
Operational Due Diligence
  • Creating a marketing plan to keep up or increase occupancy rates
  • Helping you find the right people to staff your project—from renovation or development to reopening

We're in your corner for the entirety of the typical due diligence period in commercial real estate. 


Property Management

We start every property management relationship with a strategic evaluation. And we finish by providing local staff, local maintenance, and national support.Information Gathering & Plan Making

Information Gathering & Projections

After completing a strategic evaluation, we give you our best advice. We let you know what (if any) operational changes we recommend and value-adds to increase long-term profitability. Then, we work together to create a plan that incorporates your vision for the property with our best practices.

Day-to-Day Operations

In-House Accounting

Our in-house accounting team provides individualized financial reports every month. We also prepare the annual operating budget and assure the property is operating efficiently without requiring the owner to be involved on a day-to-day basis. We pay attention to the smallest details.

Insurance Coverage Assistance

Our large portfolio allows us to help owners obtain the most economical and extensive insurance coverage. This decreases your insurance expense while increasing your coverage

Leasing and Marketing

Our goal is to increase occupancy levels—whether you own an apartment complex, shopping center, warehouse, office, or flex-space. We offer marketing support, signage, and other promotional materials to ensure your investment is fully occupied.

On-site Managers and Maintenance

Our on-site managers go through extensive training in customer service, reporting, collections, and maintenance. We hire local teams that know the area and your property.

Property Renovation

We specialize in turning around ​communities in need of renovation​ to increase occupancy, rent, and overall asset value.

Rent Collection

We take the burden of collecting rent away from the owner and work diligently to secure rents from tenants, on time and in full. We offer an online rent payment platform increasing efficiency both with the residents and within the office.

Vendor Relationships

We constantly evaluate current service contracts and vendors. We have strong relationships—over 20 years—with many recommended vendors.

Commercial Underwriting & New Developments

Underwriting becomes more complex when you’re looking at new developments. This is because most financing deals need two-three years of cash flow projections. And city permitting requires an accurate budget and timeline.

Putting together accurate budgets and timelines on an undeveloped space requires specific knowledge. Knowledge that an investor may not have. We don’t expect investors to know the cost of connecting a new property to city utilities, the cost of each step the planning and construction process, and how long it will take to actually get a tenant in the building.

Fairmont Underwriting

Underwriting your property—whether you’re looking at working with a bank rep to apply for financing or using investor capitol—is complicated. Small errors, missing expenses, or not understanding a process will cost you money. Our experienced, professional staff will save you money, time, and stress.

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Technology Provides

Intuitive Communication with Owners and Keeps Us Competitive

Our technology keeps our work transparent for clients. Our cutting-edge accounting software compiles monthly financial reports. Weekly reports include: new leases, units on notice to vacate, renewals, unit make-ready status, traffic reports, rental collections, and delinquent rent.

Let’s talk about yourProperty Management Options!