Real estate underwriting is the process that lenders use to assess the eligibility, creditworthiness, and risk of a potential buyer. In essence, underwriters are human “lie detectors,” looking to determine whether buyers have represented themselves honestly on their applications.

The key factor in real estate underwriting is the examination and determination of risk, and in the case of commercial real estate, the underwriter’s primary purpose is to appraise a property’s investment value and predict its future cash flow. For example, if a buyer is looking to purchase an office building, the underwriter will need to take into account the current value of the building, the buyer’s creditworthiness, and the building’s history in order to predict how profitable the purchase will be as an investment.

Yes. Commercial real estate firms are typically overflowing with documents, and a variety of those at that. Because of the often unstructured nature of real estate documents, it can be difficult to completely eliminate manual processing. However, with a robust intelligent document processor like ADEx, which is purpose-built to completely and accurately do this type of work, you can automate your commercial real estate document processing and greatly speed up the entire workflow. ADEx can also be tailored to search for thousands of datapoints that are important to your portfolio's unique financial model, ultimately uncovering more insights  than a human could do in the same amount of time.

Absolutely. Cognitive document processors like ADEx can streamline and simplify Due Diligence with its superior extraction and analysis capabilities. ADEx is trained to identify and accurately extract over 4000 different datapoints from 2000+ document types specific to real estate transactions. These document types include images, charts, graphics, signatures, and site surveys.

In addition, ADEx's cognitive capabilities can interpret complex language and relationships, such as the difference between right of first refusal and right of first offer and categorize data and documents accordingly, while also providing secondary calculations—something your average IDP cannot do. This data can then be fed into end systems, financial models, or abstracts that are easily digestible by brokers and investors, so they can spend more time engineering deals and collaborating with stakeholders, and, armed with accurate and insightful data, take their business to the next level.

ADEx is purpose-built for real estate investors and is pre-trained to recognize, process, and analyze thousands of document types. Intelligent document processors are a relatively new addition to the commercial real estate industry, but ADEx is well ahead of the curve in that it already comprehends over 2,000 relevant document types and has already processed over 7 million documents.. Companies that have incorporated ADEx into their workflows are already reaping the benefits of having reliable document processing automation software, a turnkey data extraction tool, and an end-to-end solution to accelerate and enrich due diligence and underwriting.

The term ‘Due Diligence’ refers to the investigation or research into all aspects of a piece of commercial real estate. The goal of this process is to find important information which may influence a buyer or seller’s decision. The amount of diligence that is ‘due’ depends on a number of circumstances, such as the available budget, the monetary value of the transaction, and any risks created by prior use of the property. This means that the process has the potential to be extensive, difficult, or even expensive, as it often must involve analysts, investment bankers, and lawyers in order to glean a more complete analysis. For example, when looking to project market rents for a property, an underwriter might need to consult market analysts and property assessors. This is where an automation tool could help slash both time and money.

A cognitive document processor can massively speed up the underwriting process while also providing commercial real estate investors with more accurate and useful data. Using a powerful AI-driven intelligent document processor like ADEx can accelerate the valuation process through real estate underwriting data extraction from both structured and unstructured documents, and identify crucial inputs such as vacancy rates, entry and exit cap rates, and rent and expense growth. These automatically gleaned insights can then be fed into financial models or investment analysis dashboards, ultimately eliminating the need for tedious or overwhelming manual document review and data entry.

The job of a cognitive document processor is to automate the intake, processing, analysis, and organization of documents in an efficient and secure way. A solution like ADEx, which is built specifically for the real estate industry, utilizes powerful AI to not only recognize keywords, but also comprehends complex relationships between information across sets of documents.This means that ADEx can handle thousands of datapoints, something which would be difficult for a human analyst to accomplish. ADEx can pass data directly to end systems, rent tables or abstracts to avoid the risk of human error in the interpretation or data entry process.