{"type":"rich","version":"1.0","provider_name":"Transistor","provider_url":"https://transistor.fm","author_name":"Climate-Ready Real Estate Investing","title":"Underwriting With Climate in the Denominator","html":"","width":"100%","height":180,"duration":1020,"description":"EPISODE DESCRIPTION Every ratio that matters in real estate — cap rate, DSCR, yield on cost — is a number divided by a number. Most investors are telling a strong story with the numerator while quietly hoping the denominator doesn't move. In a climate-repricing market, the denominator is moving. Episode 5 of Climate-Ready Real Estate Investing builds the framework for putting it back where it belongs.Host Jamie Wolf walks through a 500-unit Class B Sun Belt multifamily acquisition — $75 million purchase, 5.5% going-in cap, 6% financing, initial DSCR of 1.18 — and shows exactly what happens when climate risk is placed in three denominators: debt service, exit value, and risk-adjusted NOI.The standard model produces a 9% levered IRR. The climate-in-the-denominator model — using NAA Premium Pulse March 2026 insurance benchmarks, 12% insurance escalation, flat NOI reflecting current Sun Belt market conditions, and a 6.75% exit cap rate — produces negative equity. The same deal. The same asset. Different assumptions. The gap between those two outcomes is Signal 4, the valuation gap, made concrete on a single transaction.The episode closes with a three-minute pre-LOI test that every investor can run before committing capital, and the four strategic responses when the denominators don't hold.Episode SummaryA 500-unit Sun Belt multifamily acquisition produces a 9% levered IRR under standard assumptions and negative equity under climate-adjusted assumptions — same asset, same purchase price, different denominators. The difference comes from three line items: insurance trajectory using current NAA Premium Pulse data ($1,500/unit at 12% CAGR), flat NOI reflecting today's supply-pressured market, and a 6.75% exit cap rate reflecting a thinned buyer pool. This episode builds the Three Denominators framework and the pre-LOI stress test that shows you which deals have margin and which ones don't before you sign.Key TakeawaysThe Three Denominators framework: Climate risk must...","thumbnail_url":"https://img.transistorcdn.com/edaVSiW7TDXFb72yvtrmHy0LDmwIgx2BDQFH-qalgqw/rs:fill:0:0:1/w:400/h:400/q:60/mb:500000/aHR0cHM6Ly9pbWct/dXBsb2FkLXByb2R1/Y3Rpb24udHJhbnNp/c3Rvci5mbS9hNmVk/NWUyYzI0MzJhN2Uz/YmQ4MTIxNmRlY2Yz/MzA2ZC5wbmc.webp","thumbnail_width":300,"thumbnail_height":300}