The Distress Deal Playbook™
How Jai Thompson Finds, Structures, and Closes Below Replacement Cost Deals in 23 Days
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📍 INTRO
Jai Thompson manages a private equity platform deploying $13–18 million per quarter across multiple real estate asset classes.
His model is asset-based, escrow-directed, and execution-driven, allowing closings in 23 days or less with certainty and clean title flow.
He acquires:
• Multifamily
• Hotels
• Luxury estates
• RV parks
• Mixed-use
Capital is structured. Teams are built in. All funds move through escrow.
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🧠 SECTION 1 — WHAT IS REPLACEMENT COST (SIMPLE)
👉 Replacement cost = what it costs to build today
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🧮 Example (3rd-grade math)
Build cost per unit = $200,000
Units = 150
150 × 200,000 = $30,000,000
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🔥 Distress Deal
If seller must sell at:
👉 $21,000,000
That’s:
30M − 21M = $9M below replacement cost
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💡 WHY THIS MATTERS
• No one can build cheaper than you bought
• Limits downside risk
• Creates instant equity
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🚨 SECTION 2 — THE DISTRESS WINDOW
Debt is maturing → sellers are stuck
They must choose:
1. Refinance (higher rate ❌)
2. Bring cash ❌
3. Sell ✅
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👉 THIS is your entry point
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🎯 SECTION 3 — EXACT DISTRESS SCRIPT (USE THIS)
💬 FIRST CALL / TEXT TO BROKER
“Hey [Name], quick question — are you seeing more deals where the loan is coming due or ownership is struggling to refinance?”
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💬 FOLLOW-UP (HOOK)
“We’re specifically looking for assets where debt pressure is driving the decision — those are the deals we can structure and close quickly.”
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💬 CONTROL QUESTION (IMPORTANT)
“What’s the loan maturity and current rate on this deal?”
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👉 This is how you uncover pain FAST
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🧠 SECTION 4 — QUESTIONS TO UNCOVER LOAN PAIN
Ask these in order:
1. “When does the loan mature?”
2. “What’s the current interest rate?”
3. “Is it floating or fixed?”
4. “Have they tried refinancing yet?”
5. “What feedback did they get from lenders?”
6. “Is there a gap they need to bring to close?”
7. “What does certainty mean to the seller?”
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👉 If they hesitate = YOU FOUND THE DEAL
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📲 SECTION 5 — BROKER OUTREACH (TEXT + EMAIL)
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📱 TEXT MESSAGE
Hey [Name], I’m targeting multifamily and hotel assets where debt is maturing or refinance is an issue. Prefer deals below replacement cost with real income. I can move fast and structure a clean close.
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📧 OUTREACH EMAIL
Subject: Debt Maturity / Recap Opportunities
Hey [Name],
I’m actively acquiring assets where debt is maturing or refinancing is creating pressure for ownership.
We focus on opportunities trading below replacement cost with strong in-place income.
Our model is asset-based and escrow-directed, allowing us to close in 23 days with clean execution.
If you have anything with:
• Loan maturity
• Recap needs
• Pricing pressure
I can move quickly and structure around it.
– Jai Thompson
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🏦 SECTION 6 — LENDER EMAIL (WITH DSCR + YIELD)
Subject: Low-Leverage Multifamily Deal – Strong Coverage
Hey [Lender],
We’re underwriting a distressed acquisition trading below replacement cost.
Key metrics:
• NOI: $1.35M
• Loan: $5.04M
• Debt Service (IO 10%): $504K
• DSCR: 2.67x
• Debt Yield: 26.7%
Strong coverage, conservative leverage, and clean structure.
Looking for IO execution with flexibility.
– Jai
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🏢 SECTION 7 — TITLE COMPANY EMAIL
Subject: Escrow Setup – Structured Disbursement Deal
Hello,
We are opening escrow on a structured acquisition.
All funds will be title-directed from the recorded price pool.
No outside capital — full escrow control and transparency.
We will provide:
• Disbursement summary
• Closing timeline
Target close: 23 days
– Jai Thompson
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⚙️ SECTION 8 — HOW TO LOCK THESE IN (23-DAY MODEL)
Day 1–3
• Broker alignment
• Financials received
Day 4–7
• Underwrite
• Lender soft approval
Day 8–10
• Offer submitted
• Title engaged
Day 11–18
• Due diligence
• Loan finalized
Day 19–23
🔥 Close
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🔥 SECTION 9 — USE CASES (REAL STORIES)
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🏢 CASE 1 — 180 UNIT MULTIFAMILY
Situation
• Loan maturing in 60 days
• Rate jumping from 3.5% → 7.5%
• Seller short $4M
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What Jai asked
“When does the loan mature and what did the lender say?”
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What happened
Seller:
👉 “We can’t refinance”
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Deal
• Replacement cost: $36M
• Bought: $25M
👉 $11M below replacement
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Outcome
• Seller exits clean
• Jai locks asset
• DSCR above 3
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🏨 CASE 2 — 120 KEY HOTEL
Situation
• Bridge loan expiring
• Occupancy recovering
• Lender pulling back
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What Jai said
“We can structure around the current income and close clean.”
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Deal
• Replacement: $30M
• Bought: $20M
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Outcome
• Seller avoids foreclosure
• Jai controls asset
• Refinance in 12 months
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🏢 CASE 3 — 220 UNIT VALUE-ADD
Situation
• Floating rate crushed cash flow
• DSCR dropped below 1
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What Jai asked
“Are they feeding the deal or looking to exit?”
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Broker response
“They’re tired.”
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Deal
• Replacement: $45M
• Bought: $32M
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Outcome
• Seller relieved
• Jai captures upside
• Institutional buyers missed it
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🧠 SECTION 10 — WHY YOUR MODEL WINS
Most buyers:
❌ Wait
❌ Compete
❌ Overpay
You:
✅ Target distress
✅ Structure smart
✅ Close fast
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💎 FINAL TRUTH
👉 Replacement cost = safety
👉 Debt pressure = opportunity
👉 Structure = profit
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🔥 ONE LINE
👉 “I don’t chase deals — I solve problems.”
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Structure over sacrifice.
Stewardship over struggle.
Every deal builds legacy.