On this episode, Fort Capital CEO Chris Powers outlines the underwriting process on industrial deals from start to finish making it simple to understand whether you’re green or a seasoned veteran. This episode will provide an outline for how these deals get done and the mistakes that a lot of people make along the way so you can deal smarter in the future. Enjoy!

For more on Underwriting, visit the Fort Capital website here.

Follow Chris on Twitter: www.Twitter.com/FortWorthChris

Learn more about Chris Powers & Fort Capital: www.FortCapitallp.com

(01:07) - What is Underwriting?

(02:14) - Variables that Contribute to the Value in Underwriting

(02:40) - Market, Demographic and their Respective Trends

(03:50) - Purchase Price

(04:15) - Expenses

(05:04) - Modeling Expenses Out in a 5-Year Model

(05:21) - Taxes & Insurance

(06:15) - Tenants

(07:03) - Where Rent is Today vs. the Market Rate

(07:59) - Tenant Renewal Probability

(09:55) - Current Vacancies

(10:42) - Capital Expenditure Requirements

(11:44) - Tenant Improvement Costs

(12:26) - Underwriting the Capital Structure & Refinance Scenarios

(13:49) - What does an exit scenario look like?

(15:15) - Things People Miss and Mistakes We’ve Missed Along the Way

(18:45) - How Fort Capital Thinks About the Process of Doing a Deal

(19:59) - How Long the Underwriting Process Should Take

(20:42) - Where We Get Most of Our Data

(21:12) - Where does information live when underwriting? How is it communicated to the team & non-team?

(22:58) - Final Thoughts on Underwriting

(23:58) - Writing an Investment Memo

(25:10) - What We Think about Presenting in Our Memos

(26:12) - Reasons to Acquire

(26:38) - Location Overview

(27:09) - The Property Itself

(27:35) - Tenant Overview

(28:10) - Sources and Uses of Funds

(29:02) - Financial Summary & What Investors Can Expect in Return

(30:22) - Partnership Terms

(31:48) - Models & Return Summary

(32:17) - Property Photos & Market Map

(33:02) - Conclusion & Free Resources from Fort Capital

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