A deal review catches the figures in a deal package that disagree with each other or with the market: an OM rent that is higher than the rent roll, a memo DSCR that does not survive trailing income, a lease step that never reached the budget. These are small gaps in single cells. They become large once they are capitalized or multiplied by twelve months. In the three worked examples below, one rent gap becomes a $2.78M value overstatement, one coverage ratio drops from 1.35x to 1.21x, and one missed step leaves $18,000 of annual rent out of a budget.
The short list
| What disagrees | Where it hides | Who feels it first |
|---|---|---|
| Rent per unit in the OM against the rent roll | OM summary page and the rent roll tab | The buyer pricing off the OM |
| Pro forma DSCR against trailing income | Credit memo and the T-12 | The lender reading the memo |
| Lease rent steps against the operating budget | Lease abstracts and the budget tab | The owner or asset manager |
| A figure stated in two places that does not match | Model, OM and T-12 | Whoever signs the IC memo |
| A formula that no longer adds what its label says | Workbook cells | Anyone relying on the output |
Three catches, with the arithmetic
The examples below use synthetic figures. They are illustrations of the kind of gap a review marks, not results from a client file.
An overstated rent changes the value
The OM shows an average rent of $1,840 per unit. The rent roll shows $1,716. The gap is $124 per unit per month.
- $124 × 112 occupied units × 12 months = $166,656 a year.
- $166,656 ÷ a 6% cap rate ≈ $2.78M of potential value overstatement.
This assumes the full rent gap flows to NOI. Your committee decides how much of it does. The point is that a $124 difference in one cell carries a seven-figure value if nobody ties the OM to the rent roll.
Trailing income changes the coverage
A credit memo shows 1.35x DSCR on a pro forma. The T-12 shows trailing NOI of $1,452,000 against $1,200,000 of annual debt service.
- $1,452,000 ÷ $1,200,000 = 1.21x on trailing income.
The memo is not wrong on its own terms. It is a different number from the one the trailing statement supports, and the credit committee should see both side by side.
A missed rent step understates income
The budget carries $14.50 per SF for an anchor area of 18,000 SF. The lease steps to $15.50 per SF on January 1, 2027.
- ($15.50 − $14.50) × 18,000 SF = $18,000 a year omitted from the budget.
Nothing in the budget looks wrong until it is read against the lease.
What comes back
A review does not return an opinion. It returns a record of what was checked:
- Marked copies of your workbooks. Each figure in the rent roll, T-12 and model is marked verified, to review or red flag. Your originals stay as they were.
- A cited report and a findings register. Findings in the OM point to their page, so the person who signs can go straight to the line.
- A count. Every review opens with how many files, how many items, how many were checked and how many were not.
Code recomputes every formula and settles every figure stated in more than one place. Then the model checks the rest against the market, drawing on 2,100+ sources.
One review, in numbers
The counts below come from one review of a six-file deal package, October 2026. Client and property are withheld.
| Count | What it is |
|---|---|
| 1,788 | figures, formulas and statements checked |
| 876 | formulas recomputed by code |
| 14 | figures settled across files |
| 898 | checked by the model |
| 0 | left unchecked |
| 6 | red flags |
| 46 | more items marked to review |
In a package of six files, the review ended with 6 red flags and 46 more items marked to review. A short, specific list is what a person who signs can act on.
What a deal review does not do
- It reads only the files you send, and says how many items it checked and how many it did not.
- It does not include a site inspection.
- It does not make the decision. The investment committee, the credit committee or the owner still does.
If a gap is marked, the next step is a question to the broker, the borrower or the property manager, with the page reference in hand.
What to send
Send one deal. For an acquisition that is usually the OM, rent roll, T-12 and model. For a loan request it is the loan package, T-12 and memo. For an asset it is the leases, the budget and the rent roll. Name the deal in the message and we reply by email.
Questions
What does a deal review check?
A deal review reads the files you send, usually the OM, rent roll, T-12, model and leases, and checks every material figure, formula and statement. Code recomputes the formulas and settles any figure stated in more than one place. Then the model checks the rest against the market.
What comes back from a deal review?
A cited report, a findings register and marked copies of your workbooks. Each figure is marked verified, to review or red flag. Findings in the OM point to their page, and the review opens with a count of what was checked and what was not.
Does a deal review replace underwriting or a site inspection?
No. A deal review tests the documents you were given. It does not include a site inspection, and your investment committee, credit committee or ownership still makes the decision.
Are my original files changed?
No. The review marks a copy of your files. Your originals stay as they were.
How this page was written
The worked examples are synthetic and their arithmetic is shown so you can recompute each one. The counts in the one-review table are that review’s own disclosure. No client or property is named.