Underwriting Memo™

Underwriting Memo™ — Sample

Corner lot · Victoria, BC · 4 units (SMUH)

PROCEEDConfidence: HIGHBasis: SiteKillSwitch defaultGenerated: 2026-03-03 04:00 PST (America/Vancouver)

Report ID	demo-sample-1
Deal ID	demo-deal-1
SKU	investment_memo_v1
Memo basis	SiteKillSwitch default
Purchase price	$1,250,000
Units	4
Region	BC
Soft costs	18.0%
Sale / unit	$1,000,000

Key Snapshot

Assessed on SiteKillSwitch default

Base margin

14.5%

Equity required

$410,000

Total cost

$2,650,000

Score

Deal Decision

PROCEED

Assessment Basis: SiteKillSwitch default

Confidence

HIGH

Margin Safety

Strong

Primary Risk

Market softening

Profit Sensitivity

X-axis: sale price change · Y-axis: net profit ($)

Executive Summary

Assessment Basis: SiteKillSwitch default

Decision: PROCEED (HIGH confidence). Economics snapshot: base margin 30% · equity required $662,500 · total project cost $2,650,000. Break-even per unit ($662,500) remains the primary watch item for this assessed scenario (SiteKillSwitch default). Risk signal: MODERATE. Primary sensitivity is exit price and hard cost discipline. Primary drivers were identified (3). Focus underwriting on the top driver set before committing to hard costs. Diligence: 3 checks were generated to de-risk key assumptions. Complete Gate 1 (zoning/yield + servicing sanity) before spending materially.

SiteKillSwitch default Profit Waterfall

Relative contribution by line item · values shown at right

Net Revenue

$3,800,000

Land Purchase

$1,250,000

Land Carry

$50,000

Net Profit

$1,150,000

SiteKillSwitch default Sensitivity Analysis

Assessment Basis: SiteKillSwitch default

Profit Curve

X-axis: sale price change · Y-axis: net profit ($)

Sale Price Change	Net Profit	Margin
-10%	$770,000	22.5%
-5%	$960,000	26.6%
0%	$1,150,000	30.3%
+5%	$1,340,000	33.6%
+10%	$1,530,000	36.6%

A 5% decrease reduces profit by 17%.

Risk Assessment

Sale price risk

LOW

How quickly profit disappears when sale assumptions soften.

Cost overrun risk

LOW

Available margin buffer against contractor and escalation variance.

Timeline risk

LOW

Longer holds increase financing drag and delivery risk.

Investment View

Assessment Basis: SiteKillSwitch default

This memo is assessed on SiteKillSwitch default. The deal currently screens as PROCEED with high confidence, but decision quality remains highly dependent on revenue discipline and execution.

Proceed only if

If zoning/yield changes (unit count), rerun immediately.
If contractor budget differs materially from assumptions, rerun immediately.
If exit comps soften materially, rerun with conservative exits.

Do not proceed if

Zoning/yield outcome does not support the assumed unit count.
Servicing or site constraints expand hard costs beyond assumptions.
Exit comps / absorption soften materially versus underwriting.

Decision Confidence Layer

Based on current assumptions, this memo reflects the sitekillswitch default basis. Generated 2026-03-03 04:00 PST (America/Vancouver). Refresh the memo whenever the deal record or latest screen changes materially.

Confidence Read

PROCEED / HIGH

At this stage, sitekillswitch default margin is 30%, equity required is about $662,500, total project cost is about $2,650,000, and break-even per unit is $662,500.

Assumption Visibility & Deal Audit

This memo reflects the assumptions captured when the latest screen was promoted into memo generation. Entered fields are shown separately from locked defaults and fields that still need confirmation.

High input confidence · Entered 4 · Defaults 2 · Confirm 1

Key Underwriting Assumptions

Purchase price

Entered

$1,250,000

Units

Entered

Region

Entered

Finance rate

Default

Carry proxy 4%

Selling costs

Confirm

Needs confirmation

Soft costs

Entered

18.0%

Contingency

Default

5.0%

Audit Notes

Assumptions version

—

Screen / memo basis

Current memo basis: SiteKillSwitch default. Generated 2026-03-03 04:00 PST (America/Vancouver). This memo should be refreshed whenever the deal record or latest screen changes materially.

Default policy

When underwriting inputs are missing, SiteKillSwitch currently falls back to locked institutional defaults such as soft costs 18.0% and contingency 5.0%.

Investment Decision

Assessment Basis: SiteKillSwitch default

PROCEED (HIGH confidence)

PROCEED

Decision Rationale

Selected scenario margin is 30%.
Selected scenario equity required is $662,500.
Selected scenario total project cost is $2,650,000.
Screening score is 95/100.

Primary Drivers

If zoning/yield changes (unit count), rerun immediately.
If contractor budget differs materially from assumptions, rerun immediately.
If exit comps soften materially, rerun with conservative exits.

Risk View

Zoning/yield outcome does not support the assumed unit count.
Servicing or site constraints expand hard costs beyond assumptions.
Exit comps / absorption soften materially versus underwriting.
Financing terms (rate, LTC) tighten beyond modeled assumptions.
Timeline extends materially (permits, servicing, construction).

Model Outputs

Key underwriting calculations used in scoring.

SiteKillSwitch default

Build area (assumed)	4,600 ft²
Hard cost (per unit)	$320,000
Hard cost ($/ft²)	$278/ft²
Hard costs (total)	—
Soft costs (total)	—
Soft costs (% of hard)	18.0%
Contingency	—
Financing rate (assumed)	—
Carry / holding (est.)	—
Total project cost	$2,650,000
Break-even / unit	$662,500

Net Revenue	$3,800,000
Profit (base)	$1,150,000
Margin % (base)	30%
ROI (Profit / Total Project Cost)	43%
ROI (Profit / Cash Invested)	2%
Equity multiple ((Cash + Profit) / Cash)	2.74×
Approx IRR (annualized)	—
Equity required	$662,500
Debt	$2,240,000
Score	95
Score breakdown	Acq 30 · Margin 30 · Cap 20 · Density 15

Deal Risk Signals (Selected Scenario)

Simple underwriting flags based on the current model outputs.

✔

Margin meets typical threshold (≥15%).

✔

Profit-on-cost is healthy (≥20%).

✔

Break-even is below regional benchmark.

✔

Deal remains profitable at -5% sale price.

Development Budget

Cost composition as a share of total project cost.

Land Purchase

$1,250,000 (47%)

Land Carry

$50,000 (2%)

Margin Sensitivity

Sale price per unit sensitivity (costs held constant).

Sale price / unit	Net Revenue	Profit	Margin
$900,000	$3,420,000	$770,000	23%
$950,000	$3,610,000	$960,000	27%
$1,000,000	$3,800,000	$1,150,000	30%
$1,050,000	$3,990,000	$1,340,000	34%
$1,100,000	$4,180,000	$1,530,000	37%

Scenarios

Revenue change versus the base case, and what that does to margin for this build.

Scenario	Revenue vs Base	Margin
Base	0%	30%
Optimized	+5%	34%
Downside	-5%	27%

Margin Waterfall

Net Revenue

$3,800,000

Land Purchase

$1,250,000

Land Carry

$50,000

Net Profit

$1,150,000

Capital Stack

Equity

$662,500 (25%)

Debt

$1,987,500 (75%)

Top Drivers

Exit price per unit remains a key underwriting sensitivity. — Tight buffer; comp support is required.
Hard costs + servicing remains a key underwriting sensitivity. — Contractor ROMs and servicing scope can shift materially.
Approvals timeline remains a key underwriting sensitivity. — Carrying costs increase with schedule drift.

Diligence Checks

Confirm zoning/yield and corner cut impacts remains a key underwriting sensitivity.
Servicing assumptions remain a key underwriting sensitivity.
2–3 contractor ROMs + contingency review remains a key underwriting sensitivity.

Risk Register

Risk	Impact	Mitigation
Market softening	Exit pricing compresses margin	Comp set + fallback exit strategy
Cost overrun	Buffer eliminated	ROMs + scope lock + contingency
Permitting delay	Carrying cost drift	Early municipal pathway validation

Sources & Evidence

Market

Comp set (3–5 closings)
Absorption evidence / DOM trends

Planning

Zoning confirmation
Pre-app notes / bylaw constraints

Construction

Contractor ROMs
Servicing/SWM concept notes

Underwriting Memo™ · SiteKillSwitch

Report ID: demo-sample-1