Review projections and financial assumptions

Name the source and period

Identify whether each number is historical, underwritten, budgeted, or projected. State the period and source. A trailing operating statement, a rent roll, and a future stabilization forecast do not describe the same thing.

Use defensible assumptions

Review revenues, expenses, vacancy, growth, capital costs, leverage, debt service, reserves, exit timing, and exit valuation as applicable. Explain material uncertainty. Do not enter a desired IRR and work backward without supporting assumptions.

Check the whole package

Review the downside cases and the consistency of the PPM and Excel model where available. Reconcile units, percentages, dates, and totals after changes. Returns in samples are fictional. Neither modeled outcomes nor past performance guarantee future results.

Make a source list for every projection

Keep a dated assumptions sheet outside the app with the source for revenue, expenses, occupancy or utilization, financing, capital spending, exit value, and hold period. Identify which figures are historical, contractual, estimates, or scenario choices. This makes it easier to explain a change and to remove unsupported precision.

Compare the assumptions in the model with the strategy narrative, fee schedule, loan terms, and relevant operating schedules. A favorable result can come from an aggressive exit assumption rather than better operating performance. Review downside scenarios and limitations alongside the headline returns.