I Don’t Chase Price — I Underwrite Income
How I Evaluate Deals in Minutes Using the 85/45/24 Model
Written by Jai Thompson
Who I Am (and How I Buy)
I manage a private equity platform deploying $13–18 million per quarter across multiple real estate asset classes.
Our model is asset-based, escrow-directed, and execution-driven, allowing us to close in 23 days or less with certainty and clean title flow.
We acquire and operate across:
Luxury estates
Single-family residential portfolios
Multifamily communities
Hospitality and hotels
Mixed-use properties
RV parks and mobile home communities
Golf resorts and destination assets
Specialized housing and income portfolios
Capital is structured. Operators are paid. Reserves are built in.
All disbursements are controlled through escrow.
We deploy with discipline, transparency, and speed—while tithing back to the communities we serve.
Step 1: Income First — Always
Before price, before comps, before opinions, I look at two documents only:
Rent Roll (what should be collected vs what is collected)
Trailing 12-Month Income Statement (what actually hit the bank)
From this deal, here’s what the numbers say.
Step 2: Read the Rent Roll (Reality Check)
Total Units: 28
Gross Scheduled Rent:
$15,365 per month
$15,365 × 12 = $184,380 per year
Actual Collected Rent (As-Is):
$9,910 per month
$9,910 × 12 = $118,920 per year
This gap tells me two things:
Vacancy exists (upside)
I must underwrite as-is, not hope
Step 3: Confirm NOI from the Income Statement
From the trailing 12-month P&L:
Total Revenue: $145,108.85
Total Expenses: $73,153.76
Net Operating Income (NOI):
$145,108.85 − $73,153.76 = $71,955 NOI
That NOI is real, not projected.
Step 4: Convert Income into Value (No Guessing)
I value income property using conservative cap rates.
Assume an 8% cap:
$71,955 ÷ 0.08 = $899,438 FMV
(round to $900,000)
This is how professionals value assets.
Income creates value — not asking price.
Step 5: Apply My 85 / 45 / 24 Structure
Once FMV is established, structure comes in.
Fair Market Value: $900,000
Offer (85% of FMV):
$900,000 × 0.85 = $765,000
Recorded Price (45% of FMV):
$900,000 × 0.45 = $405,000
Lender Position (24% of FMV):
$900,000 × 0.24 = $216,000
Seller Legacy Payoff (Always Shown)
Seller Payoff = Offer − Lender
$765,000 − $216,000 = $549,000
Paid through escrow, clean and certain.
No seller carry. No confusion. No side agreements.
Step 6: DSCR Stress Test (This Is Where Deals Die or Live)
Conservative Assumptions
Interest-only loan
8% rate
Annual Debt Service:
$216,000 × 0.08 = $17,280
DSCR (As-Is)
$71,955 ÷ $17,280 = 4.16 DSCR
Lenders want:
1.25 minimum
1.75 strong
2.00+ institutional
This deal clears 4.16.
Severe Stress Test (50% income drop)
$71,955 × 0.50 = $35,977 NOI
$35,977 ÷ $17,280 = 2.08 DSCR
Even under pain, the loan still pays.
Step 7: Yield Test (No Smoke)
Asset Yield:
$71,955 ÷ $900,000 = 7.99% (~8%)
That yield is real, supported, and bankable.
Why I Can Move Fast (and Close in 23 Days)
Income proven
Leverage capped at 24%
DSCR stress-tested
Seller payoff guaranteed
Escrow controls all disbursements
No personal cash or credit
This is why my closings don’t fall apart.
Property Finders: How You Get Paid (Directly Through Escrow)
Property finders are paid directly by title, not promises.
Your fee is:
Listed on the closing statement
Disbursed by escrow
Paid at closing
No chasing. No delays.
Two Real Examples
Marcus L. — Multifamily Scout
Delivered full rent roll, T12, taxes, and seller contact
Deal cleared underwriting in one pass
Paid finder fee at closing in under 23 days
Tanya R. — Portfolio Sourcing Partner
Provided clean occupancy data + utility breakdown
No fluff, no missing pieces
Escrow paid her same day we closed
The faster you send complete information, the faster you get paid.
Final Word
I don’t negotiate off emotion.
I don’t chase retail pricing.
I don’t gamble on upside.
I evaluate income first, structure with 85/45/24, stress test everything, and close with certainty.
Contact Mr. Jai Thompson
📞 Call or Text: 980-353-2408
Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.