Every opportunity we send arrives as an investment memo in this format: the numbers first, then the thesis, the downside and the exit. The example below is illustrative. Its figures show the structure, not a current opportunity.
One asset, one document, the same sections every time.
| Asset | 12-unit residential portfolio |
| Location | Vake, Tbilisi |
| Acquisition | $3.2M |
| Renovation | $300K |
| Total basis | $3.5M |
| Projected annual gross rent | $280K |
| Projected NOI | $220K |
| Stabilized yield | 6.3% |
| Five-year projected IRR | 17.2% |
| Equity requirement | $2M |
| Debt | $1.5M, only where a lender's indicative terms are in hand |
| Target exit | Year 5 |
| Exit assumption | Set per opportunity from comparable sales |
What makes this building, this seller and this moment mispriced relative to the district, and what has to be true for the thesis to hold.
District price and rent benchmarks from our quarterly report, transaction volumes, foreign-buyer share, and where this asset sits against the district median on price per square metre and rent.
Comparable sales, the seller's position, the negotiation path, and the discount to comparable transactions at which we recommend buying.
Rental comps by unit type, target occupancy, operating expenses, management structure and the renovation scope with its fixed budget.
The downside case, stated in dollars: rents 15% below the assumption, six months longer to stabilize, and what that does to yield, cash flow and the exit. Base case and upside case sit beside it.
The realistic buyer for this asset in this district, unit by unit or as a portfolio, the settlement range below asking we would plan for, and net proceeds after commission and tax.
Currency, liquidity, regulatory, construction, tenant and market risk, each quantified where possible and never omitted.
Source, due diligence, acquisition, renovation, leasing, property management, reporting, exit.
Figures above are illustrative placeholders in the format we use. A live memo carries sourced, dated numbers for one specific asset. Debt is shown only where a lender's indicative terms are in hand; the base case is presented unlevered.
Every memo carries all of these. None are optional.
"I've looked at the deal. I have a few questions." This is where the memo has to hold up.
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