Underwriting is often viewed as a technical exercise, but its quality is shaped by the platform and process behind it.

At Steadfast, long-standing sourcing relationships create a broad opportunity set, operating insight helps test assumptions against current conditions, proprietary models refined over decades create a faster and cleaner first view, and continued diligence determines whether a deal holds up under scrutiny. Together, those factors shape how Steadfast moves from deal flow to a final investment decision.

This article offers a closer look at how that process works in practice.

A broader opportunity set allows for stricter screening

The process starts with Bill Stoll, Chief Investment Officer, who leads acquisitions and manages the active pipeline. The opportunities he sees come through long-standing broker, seller, and institutional relationships built over decades. A broad opportunity set gives Steadfast room to be selective rather than reactive.

Many deals fall away before formal underwriting begins because they sit outside Steadfast’s target markets, size range, property profile, or pricing parameters. By the time an opportunity reaches Dean Curci, Senior Vice President of Real Estate Investments, and Todd Bassman, Director of Financial Analysis, it has already passed an initial review of fit, location, and general economics. Deeper analysis is then applied to a narrower set of opportunities that justify closer attention.

Operating insight improves the first view

When a deal reaches the underwriting team, Steadfast’s owner-operator structure gives the team a practical advantage. Instead of relying only on broker materials and historical statements, the underwriting team can test assumptions against current operating input from within the platform.

Bill described that advantage when we spoke with him: “With an owner-operator model, I have a property management team I can instantly lean on a daily basis to understand what it takes to run a property.” That access, he said, gives the team “more real time information and more real information.”

Current operating perspective helps the team judge whether payroll is understated, whether taxes are likely to reset, whether insurance is too low for the market, and whether the seller’s operating profile is likely to hold up after closing. That gives the underwriting process a stronger footing in operating reality rather than offering materials alone.

Proprietary models make the first pass more efficient

Steadfast supports the initial view with their proprietary Excel models that have been refined over time, along with tools that help standardize incoming information. Rent rolls, trailing financials, and operating statements rarely arrive in the same format, so comparability has to be created before analysis can move very far.

Curci and Bassman described that benefit: “Our models allow us to pretty readily underwrite a property that’s offered for sale.” Standardization also reduces time spent cleaning files and makes one opportunity easier to compare with another.

More recently, the team has also started incorporating AI-assisted tools into the early stage of review. Bill described the benefit as: “the one thing great about AI is that it’s quick.” A trailing 12-month statement and rent roll can be loaded into the system, and “in two minutes” the team has a base pro forma to work from. But Bill was clear, Steadfast’s underwriting and deal selection process relies on human judgment and a process refined over decades. AI is being used more narrowly, to speed up the initial pass, standardize incoming information, and help the team determine which opportunities deserve deeper analysis, not to replace.

Dean also put it this way: “You really have to take into account not just the tool itself, but also the experience of the people using the tools.” That’s what makes the process intelligent.

Ongoing diligence determines whether the deal holds up

The team explained that underwriting continues to evolve as a deal moves forward.

Pricing can change during negotiation, lender quotes become more specific, and assumptions around taxes, insurance, and operations are revised as better information comes in. In Dean’s words, “we continue to perfect that and refine that over the course of the entire due diligence period.”

By the time Steadfast reaches a final investment decision, the opportunity has already moved through multiple rounds of review. The initial thesis has been tested against better data, tighter assumptions, and a more complete understanding of the asset.

Readers interested in the front end of Steadfast’s investment process can also read Bill Stoll’s companion piece, Our Capital Allocation Strategy: How We Filter Through Roughly 200 Deals a Month, which offers additional context on how Steadfast reviews and narrows a large opportunity set.

Disclaimer: The information provided in this article is for informational and educational purposes only. It is not intended to serve as investment, tax, or legal advice, nor should it be interpreted as an offer to buy or sell any security. Private real estate investments carry significant risks, including the potential loss of principal, and are intended for accredited investors who understand and can bear those risks. Any discussion of tax treatment relates solely to the property-level structure and does not reflect or predict individual investor outcomes. Tax implications vary based on each investor’s circumstances, and readers should consult their own financial, legal, and tax advisors before making any investment decision.