Regulatory Confidence and Risk Management with Portfolio Intelligence
Introducing CRE Intelligence In the commercial real estate (CRE) lending space, managing a loan portfolio has always been a complex and...
Take 5: Underwriting Scenarios are here (and so much more)
New Year. New Features. This Take 5, we're diving into the ones we think you'll love most.
blooma
Dec 3, 2024
If you’ve been in the Blooma platform recently, things look a little different and we can’t wait to share more about what’s changed.
If you’re new around here (hello!), allow us to introduce ourselves first…We’re Blooma and we’re here to change the way you think about CRE underwriting (and if you’re here, you probably think about it a lot). Put simply, the process today sucks – and it doesn’t have to. From pre-flight to portfolio monitoring, Blooma automates, streamlines, and injects data into your everyday process so you can get out of the weeds and into your strategy. And now, it’s even better.
As part of a larger release, we’ve rolled out several new features that make it easier than ever to explore your deal data. More specifically, we’ve added new functionality to model different underwriting scenarios. Now, you can generate multiple cash flow analyses and valuation models, meaning you can effectively compare and evaluate various underwriting assumptions.
Keep reading to check out what’s new and why you’ll love it. Short on time? Watch the video instead:
1. Upload and generate multiple rent rolls
What’s changing? Users will have the ability to upload and generate multiple rent rolls per deal, allowing consideration of past, current, and future property performances. Each rent roll will have an effective date to label and identify specific time periods. Once created, you can effortlessly rename, rearrange and selecta default, allowing the option for rent rolls to drive revenues within the underwriting scenarios to generate valuations.
Why we love it: The clarity. We’ve made it easier than ever to compare, contrast and organize your rent roll data. Now, users can effortlessly track historical data and trends with review of historical and forecasted property performances all while utilizing the various rent rolls uploaded.
2. Access detailed cash flow information from property level financials
What’s changing? They say ‘love is in the details’ and we tend to agree. Now, when you upload property financials like a P&L to your deal, Blooma will parse data at the line level, even if there are multiple files — and at any stage in your workflow. Once created, the system will produce various property valuations on your behalf from the uploaded files.
- Access this new feature at deal creation (select “Intelligent Deal Creation”) or for existing deals via the Document Upload Center.
- The following data will be parsed for acquisition or refinance transactions:
- Most recent historical P&L
- 1 year borrower proforma
- The following data will be parsed for construction or bridge deals:
- Most recent historical P&L
- Up to 5 years of future projections
Why we love it: The time savings. This update will allow users to evaluate several P&Ls at a time to understand cash flow, confidently ask the right questions, support and justify underwriting assumptions with less manual data entry. Additionally, all parsed data will flow into your mapped underwriting templates.
3. Create unlimited underwriting scenarios…
What’s changing? Users will not be limited to the number of customizable scenarios being generated for each deal. Build out your own scenarios with confidence by creating a foundational cash flow (including line items like, revenue, vacancy, and expenses). Then, apply a well-supported cap rate to generate a valuation with comfort for your deal. You can also choose which valuation will drive deal metrics (LTV, DSCR, debt yield, cash return, etc.).
Why we love it: The insights. With this new feature, you’ll unlock greater insight into your deals, like determining the property’s financial capacity to service debt alone Review historical cash flow data, analyze current in-place P&L figures, and forecast a number of cash flow scenarios to make more informed decisions about the property potential and associated risk.
4. …and compare them.
What’s changing? Once the system has parsed all detailed historical, present and future cash flow data, you can select scenarios for a quick line-by-line comparison.
Why we love it: It’s just good common sense. Use what you have to drive additional analysis quickly and efficiently.
5. Multiple comp ranking profiles by asset type
What’s changing? Comp ranking profiles are now set by asset type. Gone is the single profile to drive ranking of comparables replaced with a distinct profile by asset type. As a result, Blooma is configured with the ability to automatically select and analyze more meaningful data points to deliver improved ordering within sale and lease comparable sets.
Why we love it: The data you want, how you want it. Now you have access to the attributes that are more meaningful by asset class, front and center.