Why We Win With Low-Leverage Capital When Others Chase High Risk

Written by Jai Thompson

I manage a private equity platform deploying $13–$18M per quarter across multiple real estate asset classes.

Our model is asset-based, escrow-directed, and execution-driven, allowing us to close in ≤23 days with certainty and clean title flow.

We acquire and operate across:

• Luxury estates

• Single-family residential portfolios

• Multifamily communities

• Hospitality and hotels

• Mixed-use properties

• RV parks and mobile home communities

• Golf resorts and destination assets

• Specialized housing and income portfolios

Capital is structured.
Operators are paid.
Reserves are built in.
All disbursements are controlled through escrow.

We deploy with discipline, transparency, and speed—while tithing back to the communities we serve.

Below are four live asset types we actively work, showing why our yields and DSCR outperform normal market underwriting.

Asset 1: Boutique Hotel (Hospitality)

• Purchase Basis: $42,000,000

• Senior Debt: $10,080,000 (24% LTV)

• In-Place NOI: $4,620,000

Debt Service (IO @ 7.25%)

• Annual Debt: $731,000

Metrics:

• Debt Yield: 45.8%

• DSCR: 6.32x

Why this wins:
Hotels fail when leverage is high and reserves are thin. We invert that. Low leverage + escrow-held reserves = survival through cycles with upside intact.

Asset 2: Class-B Multifamily (432 Units)

• Purchase Basis: $131,000,000

• Senior Debt: $31,440,000 (24% LTV)

• In-Place NOI: $6,050,000

Debt Service (IO @ 7.25%)

• Annual Debt: $2,278,000

Metrics:

• Debt Yield: 19.2%

• DSCR: 2.66x

Why this wins:
Market lenders target 8–10% debt yield and 1.25x DSCR. We operate with double the protection. That’s why lenders move fast.

Asset 3: Luxury Estate (Income-Producing)

• Market Value: $18,500,000

• Recorded Basis: $8,325,000

• Senior Debt: $4,440,000 (24% FMV)

• Net Operating Income: $1,480,000

Debt Service (IO @ 7.50%)

• Annual Debt: $333,000

Metrics:

• Debt Yield: 33.3%

• DSCR: 4.44x

Why this wins:
Luxury assets are mispriced when viewed as homes instead of income engines. We underwrite earnings, not emotion.

Asset 4: Secondary Multifamily (198 Units)

• Purchase Basis: $38,200,000

• Senior Debt: $9,168,000 (24% LTV)

• In-Place NOI: $2,720,000

Debt Service (IO @ 7.25%)

• Annual Debt: $665,000

Metrics:

• Debt Yield: 29.7%

• DSCR: 4.09x

Why this wins:
Secondary markets demand margin for error. Low basis and strong in-place cash flow eliminate dependency on rent growth stories.

Why Our Yields Are Higher Than Normal

Most deals fail because they are built on:

• High leverage

• Thin reserves

• Hope-based NOI growth

Our deals are built on:

• ≤24% senior leverage

• Escrow-controlled reserves

• In-place performance

This produces:

• Above-market debt yield

• DSCR that survives rate shocks

• Predictable execution

That is why our closings are fast.
That is why lenders say yes.
That is why capital stays patient.

Contact

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