HOW TO ANALYZE A COMMERCIAL REAL ESTATE DEAL

In this episode, we cover:

— Net Operating Income (NOI)

— where every commercial real estate analysis begins

— How to calculate a property's real NOI instead of simply trusting the seller's numbers

— Cap Rate

— how to calculate it, compare properties, and understand when it can be misleading

— The relationship between cap rates, interest rates, risk, and property values

— Cash-on-Cash Return

— what you're actually earning on the cash you invested

— How leverage and debt service can turn an attractive property into a weak investment

— Internal Rate of Return (IRR)

— measuring your return across the entire investment and eventual sale

— Why your exit cap rate can dramatically change projected returns

— How to combine all four metrics into a practical buy-or-walk-away decision

— How to stress-test vacancy, rent growth, interest rates, and exit assumptions

— Five underwriting mistakes that can make a bad deal look good

The biggest lesson? Don't fall in love with the property before you understand the numbers. Commercial real estate investing isn't about how impressive a building looks or how exciting the opportunity sounds. Build your own model using actual leases and expenses, stress-test your assumptions, and be disciplined enough to walk away when the deal doesn't underwrite.

— Net Operating Income (NOI)

— Cap Rate Explained

— Cash-on-Cash Return

— Internal Rate of Return (IRR)

— Putting the Four Metrics Together

— Five Underwriting Mistakes That Make Bad Deals Look Good

— Key Takeaways & Closing

📞 WORK WITH ROY MALKISON Real Estate · Loans · Insurance · Business Brokerage

📱 (972) 918-5500 🌐 malkison.com

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