There is absolutely something to be said about a 5-year IRR as a sanity check, to confirm whether acquisition basis and risk are sensible.
But IRR is heavily influenced by leverage, refinancing conditions, and exit timing.
We begin with unlevered yield.
It answers a simpler question:
What does the asset earn on its own?
If a property cannot produce durable cash flow before leverage, it does not qualify.
Financial structure may enhance returns, but it cannot repair a weak foundation.
Structural earning power must stand independently.
By underwriting yield first, we isolate what matters:
• Acquisition basis
• Demand depth within a defined pricing band
• Operating efficiency
• Long-term pricing power
These factors determine performance across cycles — independent of refinancing windows or sentiment shifts.
We operate as long-term stewards. Exit is optional. Yield is structural.
Downside protection begins with earning power and upside compounds through time.
That is the discipline.
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