Methodology
How we build every quantitative report
An open, reproducible methodology based on official sources. This is what sits behind the verdict.
01
Four pillars
01
Official data
Catastro, MIVAU, SERPAVI, INE and Bank of Spain as primary sources.
02
Explicit assumptions
Every parameter is documented: vacancy, fees, property tax, mortgage rate.
03
Open model
Standard real-estate finance formulas: yield, cap rate, NOI, DSCR.
04
Stress test
Rate hike, rent drop, extended vacancy and one-off community charges.
02
From input to verdict
- 01
Input capture
Cadastral reference, price, projected rent and financing terms if applicable.
- 02
Enrichment
The engine cross-references public area data, price history and SERPAVI bands.
- 03
Calculation
Gross yield, cap rate, NOI, leveraged cash flow, ROE and DSCR.
- 04
Scenarios
Three scenarios — base, conservative and stress — with their implications.
- 05
Alerts
Heuristic rules flag visible risks: negative cash flow, off-market rent, price above average.
- 06
Verdict
A single quantitative reading alongside the numbers and assumptions that support it.
03
Metrics glossary
| Metric | Definition | Reading |
|---|---|---|
| Gross yield | Annual rent / purchase price | First filter, not conclusive |
| Cap rate | NOI / price | Operating profitability without financing |
| NOI | Rent − operating costs | Real asset capacity |
| Leveraged cash flow | NOI − debt service | Investor's real liquidity |
| Leveraged ROE | Net profit / equity | Return on equity |
| DSCR | NOI / debt service | Cushion against the instalment |
04
Sources used
Catastro
MIVAU
SERPAVI
INE
Banco de España
Non-exhaustive list. Applicable sources vary by municipality and property type.
05
Model limits
Trusted sources
Public data, transparent assumptions, reproducible models.
Every report can be audited against its inputs. We treat methodology as a public good, not a black box.