If you’re familiar with Pereview Software, you’ve likely heard this claim: Pereview is the only single integrated commercial real estate asset management platform that manages data throughout the entire Life of the Asset®.
As we continue this series, I want to dive deeper into what we mean by this statement and explore how Pereview impacts each stage of the real estate asset lifecycle. A few weeks ago, we focused on Acquisitions; this week we will focus on Underwriting.
What is Pereview?
Pereview is a platform built by real estate industry veterans specifically for the real estate industry. Pereview manages your data, all in one place, throughout the entire investment lifecycle – from the fund, to the lease.
Within that lifecycle, the underwriting stage is particularly critical. Transactions and Asset Management teams know that there’s no margin for error in underwriting.
How Pereview Impacts the Underwriting Stage of the Asset Lifecycle
Let’s start by naming the primary pain that firms experience during underwriting: “Excel Hell.”
For most firms, the final underwriting analysis is done in Excel – often using models developed by a junior analyst. These models are seldom standardized and prone to manual errors, such as a slightly incorrect formula, or a range of cells that the analyst forgot to update or include. Most of the time those errors aren’t material – but “most of the time” shouldn’t be your standard of accuracy.
More and more companies have realized that while Excel is a pretty good modeling tool, it’s a terrible database and an even worse reporting platform. It’s time to get this critical function of your business out of Excel and into a platform like Pereview that has proper controls in place.
Pereview connects your existing Excel underwriting model(s) to your unique Pereview database, allowing for centralized storage of your underwriting assumptions and cashflows. Once the data is centralized, reporting on underwriting projections versus actual performance is one click away.
Picture an investor-quality, dynamic report producing a business plan with all underwriting metrics. Now picture generating that report in seconds, not days. Oh, and make sure it includes accurate, trusted metrics like: before-fee ROE, stabilized cap rate, before-fee IRR, stabilized NOI, stabilized occupancy, terminal cap rate, transaction lead, sale date, hold period, and sale price.
Pretty good, right? This is just part of the value that Pereview drives for our clients.
Pereview also reduces many of Excel’s inherent risks. Our proprietary technology framework eliminates the risk of dirty data by populating your model with clean and properly governed data. This allows you to continue using Excel as a modeling tool without relying on it as your only underwriting database.
Cap rates, closing costs, leveraged and un-leveraged IRRs, etc., are available to further automate reporting. Asset-level dashboards track original investment amount and strategy, as well as un-leveraged profits, un-leveraged IRR, disposition date, disposition cap rate, disposition amount, and any other metric that’s important to your organization. Full-version control is also enabled, with secure storage of the model at the property level in Pereview’s document management solution.
And as an added benefit, our Excel modeling framework allows for auto-population of Cortland, Townsend, and many other consultant reports.
Excel Hell, risky reporting, inaccurate data, incomplete models? Out. A secure and centralized database, Excel model integration, clean data, and push-button reporting? In! That’s how Pereview drives value during the underwriting stage and beyond.
Speaking of beyond, we will continue our deep dive into how Pereview impacts all stages of the Life of the Asset® over the next few weeks.