Understanding the Pretty Boi Capital Stack (85 / 45 / 24 Explained Simply)

Understanding the Pretty Boi Capital Stack (85 / 45 / 24 Explained Simply)

Understanding the Pretty Boi Capital Stack (85 / 45 / 24 Explained Simply)

How Recorded Price, Economic Value, and Lender Position Work Together

Audience: Title companies, lenders, brokers, agents
Purpose: Structure clarity
Outcome: Eliminates confusion around recorded price vs. economic value before closing

What Is the Pretty Boi Capital Stack?

The Pretty Boi Capital Stack (85 / 45 / 24) is a structured, asset-based acquisition framework used by Pretty Boi Estates™ and Pretty Boi CEO™ LLC.

It separates economic value, recorded price, and lender exposure—so each party understands exactly where they sit.

This model is designed for certainty, speed, and escrow-controlled execution.

The Three Numbers Explained (Third-Grade Simple)

1. 85% — Offer Price (Economic Value)

  • Based on true fair market value supported by income and use

  • Reflects the real earning power of the asset

  • Used for negotiations and seller expectations

  • Not recorded on title

This is the number sellers care about economically.

2. 45% — Recorded Price (Title & Tax Value)

  • The price recorded on the deed

  • Used for:

    • Transfer taxes

    • Title insurance

    • Public records

    • Lender underwriting baseline

This lower recorded price:

  • Reduces taxes and fees

  • Lowers liability exposure

  • Creates a conservative foundation for the transaction

Important:
The recorded price is a structural tool, not a statement of asset quality.

3. 24% — Lender Position

  • The lender funds against the recorded price, not the premium value

  • This creates:

    • Extremely low loan-to-value

    • Strong collateral coverage

    • Built-in downside protection

From a lender perspective, this is high-security lending.

Why the Numbers Are Intentionally Different

Most confusion in structured deals comes from assuming:

“The recorded price must equal the economic value.”

That assumption is incorrect in asset-based transactions.

Here’s the truth:

  • Economic value is driven by income and use

  • Recorded price is driven by risk management

  • Lender exposure is driven by downside protection

Each number has a different job.

How Title-Directed Disbursements Work

All funds move through escrow.

There is no outside money and no side agreements.

From the recorded price pool, escrow disburses:

  • Seller payoff (at close and any rolled portion)

  • Lender fees

  • Buyer salary

  • Reserves (operations, furniture, vehicles)

  • Cash back

  • Closing costs

  • 1% Kayan Trust allocation

Cash in = cash out. Always.

This is why title companies can close these transactions cleanly.

Why This Stack Creates Certainty

For Sellers

  • Clear payoff logic

  • No buyer credit risk

  • No appraisal renegotiation

  • Predictable closing timeline

For Brokers

  • Fewer deal collapses

  • Faster underwriting decisions

  • Simple explanation to clients

  • Clean coordination with title

For Lenders

  • Low effective LTV

  • Strong collateral coverage

  • Income-supported debt service

  • Escrow-controlled execution

What This Model Is Not

  • Not consumer financing

  • Not dependent on personal credit

  • Not reliant on speculative appreciation

  • Not a gimmick

This is institutional asset-based structuring adapted for speed and certainty.

When to Use This Structure

Use the Pretty Boi Capital Stack when:

  • Income is real and provable

  • Speed matters

  • Risk must be controlled

  • All parties value clarity over complexity

If a deal requires:

  • Credit scores

  • Personal down payments

  • Consumer underwriting logic

It is not a fit for this model.

Next Step

To evaluate a property using the Pretty Boi Capital Stack, submit it to:

Jai Thompson
Principal Buyer | Asset-Based Acquisitions
Pretty Boi Estates™

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