How to Write a Deal Memo
That Gets Read
Capital partners receive dozens of memos per week. Most get skimmed in under a minute. Here is how to make yours stand out.
What Capital Partners Actually Want
Before you write a single word, understand what the reader needs. Their time is limited and their inbox is full.
A Quick Decision on Fit
Within 30 seconds, they need to know: Is this deal in my wheelhouse? Asset type, geography, deal size, and capital structure should be immediately obvious. If they have to hunt for basics, they move on.
Understanding the Story
Every deal has a thesis. Why does this investment make sense? What is the sponsor trying to accomplish? A memo that just lists numbers without narrative fails to answer the most important question: Why should I care?
Proof That Numbers Work
Key metrics must be front and center: NOI, DSCR, LTV, cap rate, rent per unit. They need to see that the math works before investing time in due diligence. Bury the numbers and you lose them.
Risks Acknowledged Upfront
Every deal has risks. Capital partners know this. A memo that pretends otherwise looks naive. Acknowledge risks clearly and explain how they are mitigated. This builds trust and saves everyone time.
A Structure That Works
Follow this structure and capital partners can find what they need in seconds.
Executive Summary (Top of Page)
One paragraph, maximum. Include: property name, type, location, deal size, loan request, key metrics (DSCR, LTV), and investment thesis. This is the only section some readers will see.
Key Metrics Table
A simple table with the numbers that matter most. Should fit on one screen. Include: Purchase Price, Loan Amount, LTV, NOI, DSCR, Cap Rate, Rent PSF, Occupancy.
Investment Thesis
Why does this deal make sense? What is the opportunity? Keep it to 2-3 paragraphs. Cover: market dynamics, property strengths, value creation strategy (if any), exit path.
Property Overview
Physical description, location details, tenant breakdown, lease terms. Include photos if available. Capital partners want to visualize the asset.
Sponsor Background
Track record, relevant experience, net worth/liquidity summary. Capital partners bet on people as much as properties. Give them confidence in the team.
Risks and Mitigants
Honest assessment of key risks. For each risk, explain how it is addressed. This section builds credibility. Pretending there are no risks destroys it.
Common Mistakes That Kill Memos
Avoid these errors and your memo will outperform 80% of what capital partners see.
Burying the Lead
Starting with background instead of the ask. Capital partners need to know what you want and why it makes sense before they will read further.
Inconsistent Numbers
NOI in the summary that does not match the T-12. DSCR calculated differently in different sections. These errors destroy credibility instantly.
Too Much Text
Dense paragraphs with no structure. Use headers, bullets, and tables. Make it scannable. Wall of text equals no read.
Missing Documents
Referencing financials that are not attached. Making claims without supporting data. If you cite it, include it. If you cannot include it, explain why.
How AI Helps Write Better Memos
The hardest part of writing a memo is not writing. It is reading, organizing, and verifying all the source material. AI handles the groundwork.
Automatic Metric Extraction
Upload your deal documents. Get key metrics extracted automatically: NOI, DSCR, cap rate, occupancy, rent per unit. Every number cited to its source page. No more hunting through spreadsheets.
Consistency Checking
AI cross-references numbers across all documents. When the rent roll says one thing and the T-12 says another, you know before the lender does. No more embarrassing inconsistencies.
Structured Summary Generation
Get an executive summary with all the elements capital partners need: deal basics, key metrics, thesis, risks. Use it as a starting point and customize for your voice.
Stop spending time on data collection. Start spending time on relationships.
Build Better Memos Faster
Upload your deal documents. Get a structured summary with verified metrics. Start writing memos that get read.