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Underwrite a Live Deal with Shortcut AI

Jake Heller

Oct 13, 202549 views

A comparison between Shortcut AI and Endex AI for underwriting a live real estate deal. The video showcases Shortcut AI's interface, features like prompt library and AI preferences, and its ability to perform web searches for rent comps and build financial models. It highlights the detailed analysis, including operating expenses, broker vs. reality checks, market valuation, cash flow projections, and a comprehensive risk assessment, ultimately concluding the deal is not viable.

Transcript

00:00

All right, now we're going to test Shortcut AI to underwrite a live deal.

00:06

And we are doing a comparison of Index AI and Shortcut AI.

00:11

In our last demo video, we used Index AI to look at a live deal that we found on LoopNet 6 units.

00:18

We're going to use Shortcut now with the same exact prompt, the same exact deal, and we're going to compare.

00:25

Now I only have my, free daily credits, which you see here at the bottom is 250.

00:32

Hopefully that's enough.

00:34

I will be upgrading soon on Shortcut and I believe on an annual plan for the most basic version.

00:41

It's about 32 bucks a month per seat and it goes, up from there.

00:45

It could get a lot more expensive just depending on the package that you want.

00:49

we will leave that for now, but at a first glance, shortcuts, very, very clean.

00:54

Same thing with Index.

00:55

You'll have an Excel super agent that lives within your Excel, initial differences right out the get go.

01:02

You have a prompt library, which I think is pretty cool.

01:05

You could also have your AI preferences with Shortcut.

01:08

I believe Index might have that as well.

01:11

I don't know enough about the files and how all that works and its capabilities of doing research on, things outside of Excel.

01:23

In other words, can it go online and do rent comps, that kind of stuff?

01:27

I'm not totally sure.

01:27

So we will find out.

01:29

Looks like you could toggle between speed and power, which is cool, Pro or Max?

01:34

Okay, so, yeah, here's our pricing.

01:36

this is the annual plan.

01:37

I'm not sure the biggest difference between Max and Pro, so we'll circle back on that.

01:43

But what I want to do is I'm going to take our deal.

01:47

The same deal we looked at in the last video.

01:49

Okay, four, two, four.

01:51

Pretty seamless uploading of that file.

01:54

it looks like it's already uploaded.

01:56

And then we're going to take our prompt bang and we're going to throw that in here.

02:01

yeah, essentially analyze the investment opportunity at West Gate Street 16 apartment building.

02:06

Blah, blah, blah, blah, blah.

02:08

Let's figure out if the pricing that the broker has it at is the right pricing or not.

02:14

So we'll hit send again.

02:16

Hopefully we have enough daily credits and watch it go to work here.

02:20

I haven't used Shortcut as much as I've used Index.

02:23

I should have.

02:24

I know.

02:25

Such a great platform, easy to use.

02:27

There's so many different use cases for it.

02:30

Pretty incredible.

02:31

but it looks like it's going to analyze this first and then provide a true market valuation.

02:36

So let's see what it does.

02:40

It's ripping through those credits.

02:43

I don't know if with Pro or the other versions, if you only have a limited number of credits.

02:49

So that we will have to figure out the prompt library is pretty genius.

02:54

Not gonna lie.

02:55

And I think just because I have the free version, I'm utilizing this interface.

02:59

But if I have the Excel plugin, then, you know, you could use your own Excel.

03:05

So quick little thoughts there.

03:07

But, so analyze the full file.

03:09

Wonderful.

03:10

It's searching the web, so that answers our question.

03:12

So it is doing web search.

03:14

Look at that.

03:15

All the rental rates for that particular zip code.

03:18

Voila.

03:19

Voila.

03:20

Really clean.

03:21

I like how you can one click into the references there.

03:23

Beautiful.

03:24

So use apartments dot com.

03:26

Oh, lots of stuff.

03:26

This is great.

03:27

Investment considerations.

03:30

So it hasn't done any building yet within the model.

03:33

Looks like it's going very deep on its research.

03:37

I wonder if it even builds the model at all.

03:40

Would be funny if it didn't.

03:42

It's doing a lot of homework online, which is cool.

03:44

Yep.

03:45

So now it's going to build the model.

03:47

So that was pretty fast research.

03:48

Let's see how fast it builds this model.

03:51

So just like index, it's going to prepare.

03:53

Excuse me.

03:54

Prepare a task list.

03:56

It looks like we have 10 pending tasks.

03:59

Boom.

04:00

So we got executive summary, property overview, rent roll analysis, operating expenses, broker versus reality, comparable sales, market valuation, cash flow, five year and risk assessment.

04:12

Whoa, that is beefy.

04:14

Looks like a lot.

04:15

Really clean.

04:16

Look at that.

04:17

Really clean.

04:18

It already hammered out two.

04:19

it looks like it's going to come back to the executive summary.

04:22

So these are just the simple property details.

04:26

Rent roll analysis.

04:27

Very similar formatting to what NDEX did.

04:30

So let's just see.

04:31

Critical issues.

04:32

Two studios.

04:33

Okay, so yeah, so this is interesting.

04:36

So section 8, unit 2214 is 39 above market studio rate.

04:41

Unsustainable.

04:42

100 agree.

04:43

Very good.

04:45

Pretty clean formatting too.

04:46

So far so good.

04:47

So far so great.

04:49

Next is the operating expenses.

04:52

Let's see it.

04:52

Go to work there.

04:59

Boom.

05:00

Yeah, so they really bumped up our expenses here as well.

05:03

Similar as index.

05:05

We're at 67% and that's cool.

05:09

Wow.

05:09

Yeah, this is great.

05:10

These notes are great.

05:12

Look, with insurance, it also did 1500 A unit.

05:15

Cool.

05:15

Utilities.

05:18

Yep.

05:19

Okay, so appears reasonable.

05:21

Fine repairs and maintenance.

05:24

yeah, it bumped those up.

05:25

Cool.

05:26

So did index.

05:27

I think that's right.

05:28

It looks like turnover and make ready was missing.

05:31

So another 7200.

05:33

Bang.

05:33

So yeah, they're gonna beat this deal up too.

05:36

I'm just overall so impressed with both of these Excel agents.

05:40

it's just amazing what they could do.

05:42

And nobody's leaving Excel either.

05:44

So having the ability.

05:45

Look at that.

05:46

Broker versus reality check.

05:47

That's clean.

05:49

So let's see.

05:50

Broker scheduled, broker stabilized.

05:52

Reality check less adjusted down for, 5% for unrealistic.

05:56

For realistic achievable rent.

05:57

Sorry, I can't speak.

06:00

M.7% realistic vacancies.

06:02

So bump that up.

06:03

Great.

06:03

Wonderful.

06:03

Cool.

06:04

Net operating income 26,000.

06:06

So that's exactly what NDEX had too.

06:08

So pretty much in the same ballpark.

06:11

Wonderful.

06:12

Now it's got its comps.

06:14

One of the bigger differences I've seen is that, index like it kind of just it like you see a lot more of the building happening in Excel versus Shortcut.

06:25

Like built and formatted, bang.

06:28

All on that page.

06:29

One of the more obvious things I've noticed so far, but super impressed with Shortcut too.

06:35

It's so awesome.

06:36

I've used it in the past too.

06:37

I just haven't used it as much.

06:39

I.

06:39

I don't know why I should be.

06:41

So we're about 60% of the way there as far as speed, from what I could tell.

06:45

similar.

06:45

Pretty similar.

06:46

Index versus Shortcut.

06:47

Not like anyone is just so much faster.

06:50

So let's see.

06:50

Market valuation income approach to 350,000.

06:55

Sales comp approach 554.

06:58

So it's saying fair value is 450,000 and you want to purchase it at 408,000.

07:04

So don't purchase it more than 453.

07:07

Okay.

07:07

So similar in value.

07:08

They're giving a little bit more leeway here.

07:11

I think mostly because of the comp approach that it took here.

07:16

And then here's our cash flow projections.

07:18

It's clean.

07:19

I like this little scenario analysis here.

07:22

Yeah, so I mean more than 50 off the purchase in both scenarios.

07:27

scenarios being index and shortcut.

07:30

So pretty much this deal is a pooper.

07:31

An absolute pooper.

07:32

Not surprised.

07:33

1920 South LA Looks like we're 80% of the way there.

07:37

And then we're going to build a comprehensive risk assessment sheet and then it's going to go back and then create our executive summary.

07:45

So more tabs from Shortcut, formatted very cleanly.

07:51

I kind of like the approach from Shortcut a little bit better on, on this particular scenario.

07:56

And we're going to continue to do these comparison analysis.

08:02

with both of them Index and shortcut.

08:05

I guess what I'm wondering with index flat out 300 bucks a month, I think that's just their standard price point.

08:11

That's per user with shortcut obviously a lot cheaper.

08:15

I'm wondering though just what you get for that price point because beyond that it starts getting into.

08:21

Wow, this is awesome.

08:22

It starts getting into similar territory as index for pricing.

08:28

This is a really detailed risk analysis.

08:31

Pass.

08:31

Do not proceed.

08:33

That's so funny.

08:33

Even if seller drop price to 408,000 year1 cash flow is negative.

08:37

This is not a distressed opportunities value destruction machine.

08:40

Walk away.

08:41

Do not counter, do not negotiate.

08:43

Move to the next deal.

08:44

That's awesome.

08:45

This is incredible.

08:46

So brilliant.

08:47

No path to stabilization.

08:49

So great, so easy to do.

08:51

I mean you can do so many other things all while this is happening.

08:54

And then looks like it took us.

08:57

So yeah.

08:57

Here's our executive summary.

08:58

If we go all the way back, bang, broker claim, reality check.

09:03

That doesn't seem right.

09:04

Oh, walk away price.

09:06

So 336 thousand.

09:08

That's exactly what index like right in that range.

09:10

I thought it was maybe crazy, but I guess not.

09:12

They both sometimes have these issues where like it's not formatted correctly, you see no dollar sign.

09:19

not a big deal by any means at all.

09:20

It's just something I've noticed.

09:22

Top five critical risks.

09:25

Yeah, this thing's a pooper.

09:27

so it's just putting on the final touches it seems and just doing a lot of double checking.

09:32

So they're both great.

09:36

again I'm going to do a couple more examples.

09:39

Not like this, but you know, we'll build a model, with each and then we'll also use our own template within each and see the best results.

09:51

So we're not going to make a final determination yet on which of these is better.

09:55

I'm impressed with both.

09:57

They're both amazing.

09:58

I might be more leaning towards shortcut when you take into consideration the pricing, but I got to figure that part of it out.

10:07

Clearly, if I could do all this at 32 bucks a month versus 300 bucks a month, that is a substantial difference.

10:14

so those are just the initial thoughts, but overall just so incredible, so impressive.

10:22

if you're working within Excel, no brainers, so many different use cases, so many different things you could do, it's just incredible.

Underwrite a Live Deal with Shortcut AI — Tella