If anyone has insight it’d be much appreciated!
If anyone has insight it’d be much appreciated!
Just curious if anyone’s got anything on it 🫡
If anyone’s willing to share it’d be much appreciated 🫡
Just curious if anyone can shed some light
I have a question for those of you who underwrite corporate credit, especially in sale-leaseback (SLB) transactions.
I understand the basics of financial statement analysis, but realistically I’m not preparing a company’s P&L, balance sheet, or cash flow statement from scratch. Instead, I’m evaluating financials that management provides during the underwriting process.
My questions are:
What exercises or habits helped you become better at determining whether the financial information you’re given is actually reliable?
How do you verify that the numbers are accurate beyond simply trusting management?
What are some common “tells” or red flags on the income statement, balance sheet, or cash flow statement that make you stop and dig deeper?
How did you train yourself to recognize when a line item doesn’t make economic sense?
If someone doesn’t have an accounting degree but wants to become exceptional at credit underwriting, what would you study or practice?
Finally, for those of you who regularly read 10-Ks, how do you approach them? Do you read them cover to cover, or are there specific sections you focus on first? Any tips for getting the most out of them?
My goal is to develop institutional-level underwriting judgment—not just calculate ratios, but understand when the story behind the numbers doesn’t add up. I’d really appreciate hearing about any exercises, frameworks, or habits that helped you get there.
Yes I used chat gpt to help clear my thoughts and ask on this
👇🏻👇🏻👇🏻
Also in addition: For those who work in institutional net lease: what does your day-to-day underwriting process for deals actually look like? How do you approach problems, develop the frameworks and ratios you rely on, and what helped you reach an institutional level of thinking? Any advice on how someone can train themselves to that standard would be greatly appreciated.
I’m not looking to dive in the weeds, I just want to expand my vision.
I feel Chris Volk just is so far ahead of things like this and I just want to try to get 1% of where he’s at
When you’re evaluating a tenant’s ability to support the proposed rent, how do you treat the sale proceeds in your underwriting?
Specifically, if the company is receiving, say, $10 million from the sale, do you build a pro forma post-closing financial model that assumes the debt is paid down (reducing interest expense), or do you underwrite strictly off the historical financial statements?
In other words, where do you incorporate the new cash from the transaction? Do you adjust the balance sheet and interest expense based on management’s expected use of proceeds before calculating metrics like FCCR, rent coverage, and leverage, or do you rely solely on historical numbers?
Curious how institutional buyers, private credit funds, and net lease investors approach this.
Yes I used chat gpt to help ask this- I’m tryn 2 figure this out
Also can you tell a SLB tenant what you want them to do w the cash infusion or no?
Anyone have any idea?
Any takers?
There is this acct on Instagram of a guy that spent thousands of dollars on a super hyper realistic sim set for him to do space travel in a video game, it’s a rig where wind blows in it, the noise and surround sound follows the air craft, etc. the point I’m trying to convey is that’s not that different then piloting a zoid, now imagine a realistic rig for zoids!
The idea is you can customize your zoid, pick the one you want, and through your rig you can operate as a pilot.
This could one day be converted to gundams , this can be tournaments, e sports,
This is just a late night thought I hope it comes to fruition
Anyone have any insight if they have had experience buying SLB STNL?