Rules, sizing and the construction budget
Rules, sizing and the construction budget
Most underwriting numbers are not typed, they are decided. Repairs are $500 a unit. Management is 5% of effective gross income. The loan is 70% of the price. Everre lets you say that directly, so the figure moves when the thing it depends on moves.
Sizing an expense from a rule
On the Expenses tab, every cell has an fx control — always visible where a rule is already in force, and on hover where none is.
Pick a rule and give it a number:
| Rule | What it means |
|---|---|
| Per unit, per year | Multiplied by the unit count on the property |
| Per square foot | Multiplied by total rentable area |
| % of gross potential rent | Before vacancy and credit loss |
| % of effective gross income | After vacancy and credit loss |
| % of purchase price | Useful for reserves and closing-year items |
The cell shows the dollars, with the rule underneath it. Change the rent roll or the unit count and the figure follows.
Typing over a rule
A number you type always wins. Type into a cell that has a rule and the rule stays on the field, but the cell keeps your figure — recalculating will not overwrite a correction. To hand the cell back to the rule, clear the value.
Where the rule applies
A rule can sit at three levels, and the most specific one wins:
- This scenario — only this column
- This property — every scenario on this property
- Everywhere — the default for that account across your organisation
Set the management fee to 5% of EGI once at the organisation level, and override the one scenario that disagrees.
One rule that is refused, and why
A reimbursable expense cannot be sized from effective gross income.
A reimbursable expense is billed back to the tenant, so it becomes income — it feeds expense reimbursements, which feed gross potential income, which is what effective gross income is calculated from. An expense sized from EGI that also feeds EGI has no answer: it would be computed from itself.
Size it from gross potential rent, per unit or per square foot instead, or make it non-reimbursable. Income lines cannot be sized from EGI or gross potential income at all, for the same reason.
Sizing the debt
On a scenario's capital stack, a debt layer no longer needs a dollar figure. Choose how it is sized:
- Amount — the figure you type, unchanged
- % of price — loan-to-value against the purchase price
- % of cost — loan-to-cost against every dollar going into the deal
- Min DSCR — the largest loan whose payments the property's NOI still covers at the ratio you set
Under the percentage you will see the dollars it comes to. That figure is read-only: the rule above defines it.
Equity is whatever is left. It is not a number you type. Total cost less total debt is the equity required, and each equity layer takes its share of that according to its share percentage. The panel shows sources against uses, the resulting LTV, and the DSCR the stack actually achieves.
Where you have set a minimum DSCR and the stack falls short of it, the panel says so. Nothing is flagged unless you have set a ratio — what a deal has to clear is between you and your lender, so Everre does not assume one.
New scenarios start at 70% LTV, 6.5%, thirty years, with equity taking the rest. That is a starting point, not a recommendation, and every field is editable the moment the scenario opens.
The construction budget
The Construction Budget tab is where a build or a renovation is itemised — one row per scope, one contingency over the total.
That total is now part of what the deal costs. Total cost = purchase price + construction (including contingency) + closing, carrying and other costs, and it is the denominator behind return on cost, loan-to-cost, and the equity you have to put in.
If you have used the construction tab before: those line items previously did not reach your returns. Scenarios with a construction budget will show a higher total cost and lower return-on-cost than they did, because the build is now counted. This is the correction, not a new charge — the figures you entered are finally being used.
Scope names are editable in place, like income and expense categories.
What the agent can do
Everything above is available to the assistant. Ask it to size the debt at 65% LTV and run it again, or set management to 4% of effective gross income on every scenario, and it uses the same engine the screen does — so the two cannot disagree.