Commercial Real Estate Funding Business Funding Deal Architecture™. Deal Dossier™

Solution 03 - Deal Intelligence

Deal Architecture™

Structural Assessment Before Capital Is Committed

Six layers. 97 assumptions. Written findings in five business days. The examination that catches structural problems before the lender does.

The problem it solves:

Most commercial real estate deals that fail at the capital source's desk did not fail because the market was bad or the operator was incompetent.

They failed because structural problems were baked into the deal that nobody examined before it went to market.

The exit cap rate assumption was not supported by current comparable transactions in the specific submarket. The insurance cost was based on 2021 rates in a market where premiums have increased 70 percent. The operator's track record showed completed deals, none of them completed at current bridge rates and current cost of capital.

These are not market problems. They are structural problems. And they are discoverable before capital is ever committed, if someone examines the deal with the right framework before it goes to the lender's desk.

That is what Deal Architecture™ does.

Layer 1 - Capital Stack Integrity

Is the equity cushion sufficient to survive a 15 percent property value decline. Is the preferred return obligation achievable under realistic performance. Are operating reserves and capital expenditure reserves funded at close from the capital raise. Does the GP have meaningful personal capital at risk.

Layer 2 - Financing Sequence

Does the bridge loan have documented extension options in writing. Is the interest reserve sized for a realistic renovation and lease-up timeline not an optimistic one. Does the permanent financing qualification criteria align with the deal's projected stabilization date.

What is examined:

Layer 3 - Exit Path Dependencies

Is the exit cap rate assumption supported by current comparable transactions in the specific submarket within the past 12 months. Is the projected sale price financeable for a buyer at current permanent loan rates. Is there a documented alternative exit if the primary exit strategy is not available.

Layer 4 - Timeline Pressure

Is the renovation timeline validated against comparable completed projects in the same market. Does the lease-up pace account for seasonal leasing patterns. Is there sufficient stabilized operating window between realistic stabilization and planned exit.

Layer 5 - Market Assumption Validity

Are the projected stabilized rents supported by current comparable units in the specific submarket not regional averages. Is the insurance cost based on a current 2025 or 2026 quote not historical rates. Has the supply pipeline been analyzed for new competing units coming online during the lease-up window.

Layer 6- Operator Execution Risk

Does the operator's track record match the asset class, renovation scope, and market of the current deal. Has the operator executed deals at current bridge rates and current cost of capital. Is there a documented property management plan in place before close.

What you receive:

A written findings report with every structural problem identified, quantified, and documented. A GREEN, YELLOW, or RED risk rating. Specific recommendations for addressing each finding before going to market for financing. Delivered in five business days.

Pricing: $2,500 per engagement.

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