Koche Engineering Spec Method
iProfit · iProphet
Profit intelligence. Engineered. Instrumented. Compared.

Design of Experiments comparing 4 deal scenarios side-by-side. Six Sigma quality bars per signal. Lean Six Sigma probability-of-success scoring. The same instrumentation a Formula-team uses to tune for a podium, applied to underwriting.

Design of Experiments — 4 Deal Scenarios in Parallel

Scenario A — Base

Rent / yr$350K
Cap Rate6.00%
Valuation$5.83M
IRR6.73%
MOIC1.42x
Spread162 bps

Scenario B — Rent +5%

Rent / yr$367.5K
Cap Rate6.00%
Valuation$6.13M
IRR7.08%
MOIC1.51x
Spread162 bps

Scenario C — Cap +50bps

Rent / yr$350K
Cap Rate6.50%
Valuation$5.38M
IRR7.10%
MOIC1.49x
Spread212 bps

Scenario D — Treasury +25bps

Rent / yr$350K
Cap Rate6.00%
Valuation$5.83M
IRR6.48%
MOIC1.37x
Spread137 bps

Six Sigma Quality Bars — Per Signal

Signal
Quality (0-6 sigma)
Sigma
DPMO
Tenant credit grade
5.5
32
Cap rate accuracy
5.1
233
Treasury anchor freshness
5.8
8
NOI variance prediction
4.4
1350
Exit cap projection
3.7
17864
Deal close path
4.8
483

Lean Six Sigma Probability-of-Success

Pilot Conversion
0.87
prior × evidence band
12-Month NOI Hold
0.93
spec parity verified
5-Year IRR Hit
0.76
Bayesian credible interval
Exit Value Floor
0.88
stress-tested at exit cap +75bps

Closed-Loop Feedback (every cycle compounds)

Every underwritten deal feeds back into the predictive market engine. Every NOI variance becomes a training signal. Every cap-rate miss tunes the sigma quality bar above. The intelligence layer is not a snapshot — it is a continuously-instrumented servo loop.

SPEC UNDERWRITE TEST MEASURE NOI VARIANCE TUNE