For our clients seeking to purchase debt securities on the secondary market, Birch|REA has a specialized team and streamlined methodology that enables us to provide comprehensive and timely analysis of real estate assets. Birch|REA delivers a detailed, executive-style report that allows our clients to quickly understand the property, the market and how we arrived at our conclusions. We have multiple report styles for each property type, which can be custom-tailored to fit our clients’ needs.
Our approach allows our clients to quickly understand the issues facing the real estate, and provides a clear picture of market value. Our process consists of the following:
Loan File Review
Our analysts carefully review appraisal, environmental, engineering and property condition reports to ensure compliance and to examine all potential property-specific issues. We also work closely with the environmental and legal team leads to identify any potential issues affecting the real estate.
We conduct in-depth market analyses to fully understand all influences on current and future property values. This includes canvassing the market for recent transactions, researching published statistics as well as those housed in Birch|REA databases, and interviewing local market experts. Our research encompasses up-to-date intelligence on vacancy and absorption rates, rent comparisons, sales and cap rate data, and other vital information affecting all types of real estate.
The Birch|REA team has vast experience with site inspection on a national basis; we can also manage third party vendor property inspections on an as-needed basis or based on client preferences.
Our analysts review tenant leases and develop abstracts tailored to our clients’ needs, to ensure accurate cash flow modeling and precise identification of risk factors.
Using industry-standard financial modeling software and through our own Excel-based models, we produce accurate and meaningful cash flow projections. Our team has the flexibility to build our own cash flow models or to verify the accuracy of an existing model. We also work with clients to ensure forecast valuations use market-tested assumptions.