Written by Jai Thompson
Internal / Lender Education
Our model is designed around lender safety first.
Recorded price: $1,500,000
Loan amount: $360,000
LTV: 24%
This is intentionally conservative.
NOI: $129,600
Annual debt service at 8% IO: $28,800
$129,600 ÷ $28,800 = 4.5
This exceeds standard underwriting requirements.
We do not require a 25% Day-1 yield.
Correct framework:
DSCR ≥ 2.0
Positive Day-1 NOI after hospitality
Yield on recorded price: 8%–12%
Upside created operationally, not assumed
Low leverage
Fully funded operations
Title-controlled disbursements
Conservative assumptions
Risk is mitigated structurally, not through aggressive yield.