@mannyawasom: Brokers mean yield on cost, not cap rate. Why the difference matters: ✅ Cap rate is NOI over value. Yield on cost is stabilized NOI over your total cost: purchase, renovation and closing costs. ✅ When a broker says you can "add value and increase your cap rate," they mean your yield on cost goes up after you renovate. ✅ The spread is the gap between your yield on cost and the cap rate at exit. A common developer target is at least 250 basis points. Know which number you're being sold before you underwrite it. 🛠️ To learn the fundamentals behind numbers like this, check out the Underwriting Course and our other tools: 🔗 msadatainsights.com/products 🏢 See how XSITE Capital underwrites its deals: 🔗 xsitecapital.com #multifamily #underwriting #realestateinvesting #commercialrealestate #apartmentinvesting #yieldoncost #caprate #valueadd
