In this episode of Ironclad Underwriting, Jason Williams and Frank Patalano break down one of the most important metrics in commercial real estate investing: the exit cap rate. They explain how even a successful business plan and strong NOI growth can be overshadowed by changes in market cap rates. The conversation covers underwriting conservatively, understanding market dynamics, and building realistic exit assumptions that protect investor returns.

Topics Covered

• What an exit cap rate is and why it matters
• How NOI and cap rates work together to determine property value
• The impact of cap rate expansion versus cap rate compression
• How interest rates influence exit cap assumptions
• Why market size and buyer demand affect property valuations
• The role of debt, DSCR requiremen ...