Beyond IRR

25 Episodes

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The Concession Problem: Why Effective Rent Is the Only Number That Matters Right Now

2026-09-2135:05

Face rent is what the lease says. Effective rent is what the property earns. In a growing number of markets right now, those are not the same number, and the gap between them is distorting every metric operators rely on to make portfolio decisions. As supply from 2021 and 2022 delivers across Sun Belt and secondary markets, concessions are back. One month free. Two months free. In the most competitive submarkets, operators are giving away 15 to 20 percent of a year's rent just to fill units. ...

What If Rates Go Up From Here: Planning Your Real Estate Portfolio for a Higher Rate Environment

2026-09-0733:16

The 10 year Treasury yield just hit a 20 month high. Thirty year mortgage rates are approaching 7%. And for the first time in this cycle, a Fed official has publicly floated the possibility of a rate increase. For the past two years, the consensus assumption in real estate has been that rates were coming down. That assumption has not materialized. And the risk of rates moving higher from here is real enough that every operator should have a plan for it. In this episode, Louis walks through ex...

Metrics That Matter — Part 3: The Long Term Outcome Layer

2026-08-2429:52

This is the final episode of the Metrics That Matter series. In Part 1, we covered the decision layer: DSCR and equity yield. In Part 2, the risk and stability layer: break even occupancy and operating expense ratio trend. Today we arrive at level four of the hierarchy: long term outcomes. IRR, equity multiple, and total return. These are the metrics most investors look at first and should look at last. You cannot act on IRR directly. You cannot walk into a property and adjust it the way you ...

Metrics That Matter — Part 2: The Risk and Stability Layer

2026-08-1032:41

A property can have a strong DSCR, a reasonable equity yield, healthy occupancy, and a clean monthly report. And it can still be fragile. It can still be one insurance renewal, one vacancy spike, or one missed rent growth assumption away from a fundamentally different situation. In Part 1 of this series, we covered the metrics that answer the foundational questions: can this property sustain its debt load (DSCR), and is my capital working or trapped (equity yield). Today in Part 2, we move to...

Metrics That Matter — Part 1: The Decision Layer

2026-07-2734:11

Most real estate investors have dashboards full of numbers — NOI, cash-on-cash return, occupancy, DSCR, IRR — but when it comes time to make an actual decision, they're still going with gut feel. That's not portfolio management. That's accounting with extra steps. In this episode, we're starting a new series called "Metrics That Matter" — focused on how to actually use the numbers in your portfolio to make real decisions. Not just track them. Not just report them. Use them to decide whether t...

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