Cap rate is not cash flow
Cap rate values the property before debt. Cash-on-cash return, DSCR, amortization, and refinancing pressure explain what the owner actually experiences.
Insights
Clear explanations for real estate, tax, valuation, financing, and business decisions.
Short, practical notes on the questions that tend to become expensive when they are left too late.
Real estate investment analysis
These topics come from the same frameworks used to review acquisitions, refinancings, development sites, and owner-investor tax decisions.
NOI quality matters
Adjusted NOI should separate recurring operations from one-time items, deferred repairs, vacancy assumptions, and seller-friendly add-backs.
Development land is a residual value problem
Future sale price drives today's land value, not the other way around. Buildable area, saleable efficiency, costs, financing, and required profit determine what land is worth.
Vancouver development and market notes
Real estate decisions sit inside a broader housing market operating system: land constraints, credit conditions, policy rules, supply, expectations, demographics, income, and cycle risk.
How to screen rezoning opportunity
Compare existing zoning with community-plan potential, transit access, precedent approvals, political support, site configuration, and the FSR uplift that can be converted into feasible floor area.
Why presales discipline the spreadsheet
For condo development, revenue assumptions must eventually be tested by buyer demand. Low, base, and high price cases matter because construction financing often depends on presale thresholds.
What must go right?
A project that only works with instant approvals, perfect pricing, no cost inflation, and easy financing is not a strong project. Good underwriting looks for resilience under imperfect conditions.
Business, acquisition, and CFO notes
The same analytical discipline applies when an owner is buying a business, preparing for sale, raising capital, or deciding whether the current finance function is strong enough.
Buying a business in Canada: three numbers to verify first
Normalized EBITDA, working capital, and owner add-backs often change the deal more than the asking price.
What a lender sees in the model
Debt capacity depends on sustainable cash flow, DSCR, working capital, collateral, and whether the forecast is connected to actual operating drivers.
Owner tax leakage check
Compensation, holding companies, passive income exposure, investment structures, and exit plans can quietly change after-tax wealth even when the business looks profitable.