Standard Housing Underwriting Guidelines

Underwriting Guidelines

Theopetra Network State has crafted its residential underwriting guidelines with a long-term vision, aiming to establish a reliable and predictable process for managing properties that can sustain over a century.

  • Type of Asset: By specifying that eligible properties must be Single Family Homes, Condominiums, or MultiFamily Properties, Theopetra focuses on residential properties that historically demonstrate high demand and stability. These property types are generally considered safer options due to their broad market appeal and proven track record of appreciating in value over time.

  • Fee Simple Ownership: Insisting on Fee Simple ownership ensures complete control and minimal complications in property rights. This type of ownership is the most straightforward and unrestricted, allowing for easier management, transfer, and sale of properties. It eliminates potential legal complexities that could arise from less clear-cut forms of ownership, thus providing a predictable environment for property handling.

  • Minimum Population Requirement: The stipulation of a minimum 35,000 population in a property's zipcode is designed to ensure properties are located in thriving, developed areas. A larger population base typically correlates with better infrastructure, essential services, and a stable housing demand, factors that are crucial for long-term property viability.

  • Population Growth Requirement: Requiring a 2% population growth within the last year indicates a growing and dynamic area. Population growth is a key indicator of economic health, job market strength, and housing demand – all essential for ensuring the long-term appreciation and demand for properties.

  • Purchase Price: By capping the total cost (purchase and rehab) at 102% of the After Repair Value (which is the projected value after repairs are completed. This is calculated by an appraiser or real estate professional determining value via a comparable property analysis within the same area.), Theopetra ensures that each property is a financially sound choice. This guideline safeguards against overexpenditure on properties.

In conclusion, Theopetra's residential underwriting guidelines are not just rules for present-day transactions; they are a blueprint for building a legacy of stable, profitable, and predictable property management.

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