Cap Rates, NOI, and REPE Metrics

Cash-on-cash return explained for REPE interviews: formula, levered vs unlevered, how it differs from IRR, and when interviewers expect it on a pro forma.

Yield on cost versus going-in cap rate for REPE interviews: formulas, a development spread example, traps on stabilized NOI, and a clean verbal.

How rising or falling rates flow into cap rates, values, and debt service in REPE interviews, with a clean verbal framework and stress examples.

T12 NOI for REPE interviews: trailing vs forward vs stabilized, broker traps, a worked diligence bridge, debt sizing, and a clean verbal answer.

REPE interview guide to DSCR: definition, loan sizing with LTV, worked examples, covenant stress, and how DSCR differs from corporate interest coverage.

Why exit capitalization rates differ from going-in caps in REPE interviews: risk, growth, rates, worked return sensitivity, and how to answer cleanly.

Clear interview answer for NOI vs EBITDA: what each includes, why REPE uses NOI, corporate parallels, and traps when someone mixes the metrics.

Deep REPE interview guide to cap rates: going-in vs exit, forward vs in-place NOI, compressions, mental math drills, and answers that survive follow-ups.

Why exit value uses forward NOI, Year 6 vs Year 5 on a five-year hold, exit vs going-in caps, net proceeds math, sensitivities, and interview answers.

How to build a cap rate sensitivity table, why exit cap assumptions drive returns, and the framework IC committees expect in every acquisition memo.

How lenders size real estate debt, what DSCR and LTV actually test, and the underwriting mistakes that break both metrics in interviews.

GPR to EGI to NOI to value: the REPE underwriting framework, and the annualization mistake that breaks it most often.