Interpreting analysis

ParcelGrade reports use the same institutional metrics you would run on a deal model.

Common metrics

• Cash-on-cash — annual cash flow relative to cash invested
• Development spread — return above a required hurdle on a development or value-add case
• IRR — annualized return over the hold period
• DSCR — debt service coverage
• Equity multiple — total equity returned divided by equity invested

Read each metric against the asking price and the assumptions in your buy box. A strong IRR with a weak DSCR is still a financing risk.