Exit Underwriting (Refi + Sale)
The takeout is where bridge deals live or die. Interviews want to hear stressed caps, realistic takeout rates, and timing risk.
What interviewers are testing
The core test
Do you underwrite the exit like a skeptic—cap rates widen, NOI misses, and the timeline slips?
1) Refi underwriting (the basics)
Say this out loud
“I underwrite the refi at a realistic takeout rate and a stressed exit cap—not today’s market at peak optimism. If takeout doesn’t clear with reasonable assumptions, I reduce proceeds, add structure, or pass.”
- Takeout rate: what a perm lender will actually quote
- Takeout DSCR: what the takeout lender will require
- Exit cap: stressed relative to comps
- Timing: does stabilization happen before maturity?
2) Sale underwriting (sanity check)
What it’s for
Even if the plan is a refi, a sale check shows you’re thinking about value sensitivity and liquidity.
Value from NOI
Stabilized NOI$3.2mm
Exit cap (stressed)6.50%
Implied value~$49.2mm
3) The three exit failure modes
Know these cold
- NOI miss: rents/occupancy underperform → proceeds shrink
- Cap widening: value compresses → refi doesn’t clear
- Timing slip: stabilization after maturity → extension risk