Chat GPT Is My New Underwriter
I’m going to give you the exact prompts you can use for underwriting and submitting LOIs to—
STORAGE SMALL BUSINESSES REAL ESTATE
It’s not a fancy “Wrap”, but I turned Chat GPT into my personal storage underwriter and LOI generator.
This video shows you exactly what I did.
I’ll paste the basic prompts, but if you want the WHOLE thing and how to apply it to other businesses, I’ll send DM you. Just ask.
I’m going to give you the exact prompts you can use for underwriting and submitting LOIs to—
— Kevin Bell 🍩 (@kevinasrx) February 11, 2025
STORAGE
SMALL BUSINESSES
REAL ESTATE
It’s not a fancy “Wrap”, but I turned Chat GPT into my personal storage underwriter and LOI generator.
This video shows you exactly what I did.… pic.twitter.com/H1f5dWiANz
LITERALLY, just paste this into ChatGPT:
I want to underwrite a self-storage facility without using a spreadsheet.
Use AI to calculate key financial metrics and determine a fair offer price based on a 9% cap rate.
Here’s the deal information:
- Facility Name: [Insert Name]
- Asking Price: [Insert Price]
- Gross Revenue: [Insert Revenue]
- NOI (if available, otherwise estimate using a 35-40% expense ratio)
- Net Rentable Square Feet (NRSF): [Insert SF]
- Occupancy Rate: [Insert %]
Calculate the following:
Price Per Square Foot (PSF)→ (Asking Price ÷ NRSF)
Gross Rent Multiplier (GRM)→ (Asking Price ÷ Gross Revenue)
NOI Estimate→ (Gross Revenue × (1 - Expense Ratio of ~38%))
Cap Rate** → (NOI ÷ Asking Price)
Offer Price Based on 9% Cap Rate→ (NOI ÷ 0.09)
THEN, paste this:
Structure financing for this offer:
Seller Financing Options
- Down Payment: 20%, 25%, and 30%
- Interest Rate: 6%, 7%, and 8%
- Loan Term: 5 Years
- Interest-Only or Fully Amortized
Conventional Bank Loan
- 25% Down Payment
- 7% Interest Rate
- 20-Year Term
Last, paste this:
Generate a Letter of Intent (LOI) based on the structured offer.
Is it perfect? No, but the point isn’t to have a perfect LOI.
The point is for an LOI to be in the hands of the seller so that you can negotiate deeper.
This will get you in the ballpark.
I have the entire step by step if you want it, I’m not fishing for comments, you can DM me personally if you prefer. I’ll send it over to you :)