CREUnderwriting>

Updated: July 6, 2024

Java-based tool designed to assist Commercial Real Estate (CRE) investors

CREUnderwriting is a Java-based tool designed to assist Commercial Real Estate (CRE) investors in evaluating and underwriting potential property investments. By automating the calculations traditionally performed manually or mentally by CRE professionals, this project aims to reduce errors and streamline the decision-making process.

Project Overview

CREUnderwriting utilizes Object-Oriented Programming (OOP) principles to create a comprehensive underwriter that processes key property data typically provided by brokers or Multiple Listing Services (MLS). This data includes:

• Asking Price
• Rent
• Asset Class
• Location Class
• Units
• Vacancy
• Average Rental of Units
• Expenses
• Capitalization Rate

How It Works

1. Data Input: The user inputs the relevant property data, which is then stored in a list for evaluation.
2. Evaluation and Underwriting: The tool processes this information using proprietary calculations commonly used by CRE investors to determine the viability of a deal.
3. Results: The program returns key metrics, including:
   • Debt Service Coverage Ratio (DSCR): Indicates the property's ability to cover its debt obligations.
   • Net Operating Income (NOI): The income generated by the property after operating expenses.
   • Expected Value: An estimate of the property's value based on the input data.

Why This Project?

In the CRE industry, professionals often rely on quick mental calculations or manual methods to evaluate deals, which can lead to errors. CREUnderwriting automates this process, ensuring more accurate and reliable assessments, ultimately helping investors make better-informed decisions.

Getting Started

1. Clone this repository.
2. Compile the Java project in your preferred IDE.
3. Run the application and input the property details as prompted.
4. Receive an evaluation of the deal's viability based on the DSCR, NOI, and Expected Value.

Prerequisites

• Java Development Kit (JDK)
• A Java IDE such as IntelliJ IDEA, Eclipse, or NetBeans

Contributing

Contributions to enhance the functionality of CREUnderwriting are welcome. If you have suggestions for improving the evaluation algorithms or expanding the tool's capabilities, feel free to reach out for improvements and advancements.