Skip to content

How to Read a Deal

Start here. What NOI, a cap rate, leverage, MoIC, and IRR actually mean, taught through one small property, one formula at a time, before you build a real model.

REPE · Foundations · about 25 minutes · 10 guided steps

Lesson outline

Operating Income

  1. Step 1: Effective Gross Income
  2. Step 2: Net Operating Income (NOI)

Entry

  1. Step 3: Purchase Price
  2. Step 4: Loan Amount
  3. Step 5: Equity Invested

Exit

  1. Step 6: Exit NOI
  2. Step 7: Exit Value
  3. Step 8: Exit Equity

Returns

  1. Step 9: MoIC
  2. Step 10: IRR