Method
How a Ferinus underwrite is built.
Every report follows the same discipline: documents are read but never trusted, all math is deterministic, and every figure carries a source or the explicit label "assumption." This page describes that process end to end.
Run a Free Snapshot Send us the OM01 / 06 · Principles
Documents are parsed. They are never believed.
The offering memorandum, rent roll, or listing you send is extracted into structured data. Every extracted figure is labelled listing-supplied and treated as a claim to test, not a fact to build on. No number from a sales document ever enters the math unverified.
The reconstruction itself is deterministic arithmetic. There is no model temperature, no black box: the same inputs always produce the same report, and every intermediate figure can be traced from the printed assumptions.
02 / 06 · Income
Income is a waterfall, not a headline number.
Effective gross income is reconstructed explicitly:
Vacancy and credit loss are income deductions, never buried in operating expenses. Where a line is not evidenced, it is defaulted conservatively (stabilized vacancy floor of 5%, stressed to 10%) and printed as an assumption — never silently.
03 / 06 · Expenses
Nine categories. All of them, every time.
Every underwrite accounts for the complete multifamily expense set — a category may be zero, but it must be explicit:
- Property tax — modeled at the post-sale reassessment, parcel-level (PCN), from Palm Beach County Property Appraiser records. Florida reassesses at purchase; the seller's tax bill is not yours.
- Insurance — benchmarked by building vintage and FEMA flood zone against Florida OIR rate-filing data, not the OM's budget line.
- Property management, repairs & maintenance, utilities, administrative, marketing, turnover & leasing, and replacement reserves — each reconstructed or explicitly assumed.
Replacement reserves sit above NOI. Discretionary value-add capital is a use of funds below NOI and never flatters the operating picture.
04 / 06 · Debt & metrics
The loan is sized by the binding constraint.
Ferinus sizes debt the way a lender does — three candidate loans, the smallest wins:
Equity and cash-on-cash derive from that sized loan, not from an assumed down payment. The report prints the binding constraint, all three candidates, the stress rate, and the market tier. On top of the snapshot metrics (NOI, cap rate, DSCR, cash-on-cash, expense ratio), every report carries the institutional set: debt yield against the agency floor, breakeven occupancy, loan constant, a five-year pro forma with disclosed growth rates, unlevered and levered IRR, equity multiple, and a sensitivity grid including the downside case.
The exit cap rate is derived from the going-in cap plus 25–50 basis points — never an unanchored input — and every pro forma includes a refinance stress test of terminal NOI against the exit balance.
05 / 06 · Verdict
A printed verdict, not a vibe.
Each report closes with a structured pass / conditional / fail verdict against explicit financeability gates — is the deal financeable, is leverage positive, does cash-on-cash clear the bar — with every threshold printed. Where the deal fails, the report states the path to pencil: the maximum supportable price and the NOI gap between here and there.
06 / 06 · Standards & sources referenced
What the numbers answer to.
Ferinus is an independent analytical tool. It is not a licensed appraisal under Florida Statute § 475.611 or USPAP, and it is not investment, legal, or tax advice. Reports are decision support for your own due diligence — the decision stays yours. Full terms: Legal Disclaimer.