Why Lender Proceeds + Premium = Recorded Price

Why Lender Proceeds + Premium = Recorded Price

Why Lender Proceeds + Premium = Recorded Price

Example numbers (Mesa drill):

  • Recorded Price: $4,500,000

  • Lender Proceeds: $2,400,000

  • Premium Allocated into Title: $2,100,000

These two numbers ONLY EXIST to do one job:

Make Cash In = Cash Out at escrow

That’s it.

They do not represent:

  • Total deal value

  • Seller’s full payoff

  • Buyer’s real cost

They represent escrow balance, not economics.