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“I Turn One Deal Into a $4M Move — Then Let the Structure Pay Me Forever”

My full execution using 85/45/24, DSCR, yield, and title-directed disbursements

I don’t buy real estate the way most people do.

I don’t bring cash.
I don’t rely on credit.
I don’t chase appreciation.

👉 I structure the deal so it pays me on Day 1…
…and explodes in value after.

This is exactly how I take a simple deal and turn it into a multi-million dollar move using math, not hope.

📍 Deal Example — 100 Unit Multifamily

Fair Market Value (FMV):

$10,800,000

🧱 My Structure (85/45/24 Model)

Offer (85%)

$10,800,000 × 0.85
= $9,180,000

Recorded Price (45%)

$10,800,000 × 0.45
= $4,860,000

Lender Position (24%)

$10,800,000 × 0.24
= $2,592,000

💰 Seller Legacy Payoff (This is the truth)

Offer − Lender

$9,180,000 − $2,592,000
= $6,588,000

👉 This is what the seller actually receives (structured + escrow-controlled)

📊 Income (Real, Not Fake)

100 units × $1,200 × 90% × 12
= $1,296,000 income

Expenses (50%)

= $648,000

NOI

= $648,000

🏦 Debt (Clean + Safe)

Loan = $2,592,000
Rate = 6.5%

Annual Debt ≈ $168,000

📈 DSCR (Strength of the deal)

DSCR = \frac{648,000}{168,000}

👉 DSCR = 3.86

✔️ This is extremely strong
✔️ Lender-safe
✔️ Downside protected

💵 Day 1 Cash Flow (I get paid immediately)

NOI = $648,000
Debt = $168,000

👉 Cash Flow = $480,000/year

🎯 Yield (My real return)

Total cash controlled = recorded price ($4,860,000)

Yield = \frac{480,000}{4,860,000}

👉 Yield ≈ 9.8% Day 1

✔️ This pays me BEFORE I even improve anything

🧾 Title-Directed Disbursements (Cash In = Cash Out)

Recorded Pool: $4,860,000

Here’s how it flows:

• Seller payoff (portion at close) → balanced

• 5% lender reserve → $243,000

• 3–5% cash back → ~$200,000

• 1% Kayan Trust → $48,600

• Finder fee (2%) → $97,200

• Lender fee (2%) → $97,200

• Closing costs → ~$120,000

• Operating reserves → ~$300,000

• Buyer salary (built in) → structured

👉 Every dollar is accounted for
👉 No outside cash
👉 Escrow controls everything

🚀 Million-Dollar Move (Where I really win)

Now I increase rent:

$200 × 100 units × 12
= $240,000 new income

New NOI

648,000 + 240,000
= $888,000

New Value (6% cap)

$888,000 ÷ 0.06
= $14,800,000

💥 Value Created

$14,800,000 − $10,800,000
= $4,000,000 gain

👉 That’s the play
👉 That’s why I buy

🌍 Different Market Use Cases

1. High Barrier Market

Example: San Diego

• Hard to build

• Limited land

👉 Lower risk
👉 Strong long-term value

✔️ I hold longer here

2. High Supply Market

Example: Austin

• Oversupply risk

• Rent pressure

👉 I only buy if:

• Strong Day 1 cash flow

• Deep discount

3. Premium Replacement Market

Example: Boca Raton

• Expensive to build

• Wealthy tenants

👉 Even if I “overpay”…
I’m still below replacement cost

4. Distressed Market Play

• Owner losing money

• Debt too high

👉 I step in with:

• lower leverage

• stronger DSCR

• clean structure

⚠️ Risk Check (What I always test)

If rates rise:

Debt doubles → $300,000

New DSCR:

\frac{648,000}{300,000}

👉 DSCR = 2.16

✔️ Still safe

👉 That’s why I stay conservative

🧭 My Final Decision Filter

I move forward ONLY if:

• Cash flows Day 1

• DSCR above 1.25 (mine is 3.86)

• Yield makes sense NOW

• $1M+ upside exists

• Debt is controlled

• Market is strong

🔚 Final Thought

I don’t need:

• perfect timing

• perfect markets

• perfect deals

I need:

👉 structure
👉 cash flow
👉 control

That’s how I turn:

• one deal → $4M gain

• one structure → lifetime income

Contact

Mr. Jai Thompson

📧 MrJai@kingjairealestategroup.zohodesk.com

📞 Call or Text: 980-353-2408

Structure over sacrifice.

Stewardship over struggle.

Every deal builds legacy.

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Structure over sacrifice. Stewardship over struggle. Every deal builds legacy.