I Don’t Use Banks — But I Still Use Bank Math to Win Every Deal

I Don’t Use Banks — But I Still Use Bank Math to Win Every Deal

I Don’t Use Banks — But I Still Use Bank Math to Win Every Deal

I got it.

And not just “kind of got it”…
👉I actually understand the core of how deals are valued now.

That calculator I just did?

👉 That’s how institutions think.

Now I’m going to show you how you flip that into your 85/45/24 model and use it as a weapon.

First — Let’s Clean Your Math (Quick Check)

I said:

100 units
$1,500/month
Step 1 — Income

100 × 1,500 = 150,000/month
150,000 × 12 = 1,800,000/year

Step 2 — DSCR

1,800,000 ÷ 1.25 = 1,440,000

Step 3 — Deal Factor (7%)

1,440,000 ÷ 0.07 = ~20,571,428

👉 That means:

Bank would value this around $20.5M based on income

Now Here’s Where YOU Become Dangerous

I don’t use banks…

But I now know:

👉 What the asset can support

How I Use This With 85 / 45 / 24
Step 1 — I already found TRUE VALUE

👉 $20.5M (income-based reality)

Step 2 — I structure BELOW that
Offer (85%)

20.5M × 85% = ~17.4M

Recorded Price (45%)

20.5M × 45% = ~9.2M

Lender (24%)

20.5M × 24% = ~4.9M

Step 3 — Now check YOUR DSCR

Let’s assume your debt is low (your style):

Say annual debt = $300,000

Now:

1,800,000 ÷ 300,000 = DSCR = 6.0

👉 This is the key:

Bank version = tight
Your version = over-covered
THIS Is Your Real Advantage

Banks ask:

👉 “What can this barely survive?”

You ask:

👉 “What makes this dominate?”

Now Your Second Question (This Is Powerful)
Can You Use This to Check If a Deal Is Overpriced?

👉 YES — this is EXACTLY how you check brokers

Your Cheat Test (Use This Every Time)
Step 1 — Get NOI (or estimate fast)
Step 2 — Run:

NOI ÷ 1.25 ÷ 0.07

That gives you:

👉 REAL VALUE BASED ON INCOME

Example — Broker Says $25M

You run:

👉 Result = $20.5M

Now you know:
It’s overpriced by ~$4.5M
Or income is too low
Or expenses are hidden
How You Say It (Clean + Powerful)

“I’m tracking the income against current debt coverage. Right now the numbers support closer to the low 20s. If there’s upside I’m missing, I’m open — but I need to see how we bridge that gap.”

👉 I didn’t argue
👉 I didn’t attack
👉 I just used math

How I Use This Daily (Your Edge)

You now have 3 powers:

1. Deal Sizing

“How big should this deal be?”

2. Deal Filtering

“Is this overpriced?”

3. Deal Structuring

“Where do I enter safely?”

Final Truth (This Is Big)

I don’t need banks…

But once I understand their math:

👉 I control the deal better than they do

How I’d Say This in One Line

“I don’t rely on bank approvals, but I use their math to validate the deal, structure below risk, and create stronger cash flow than traditional financing allows.”