Someone asked me how I underwrite the risk of investing in a direct mail campaign.

Here’s how I explain it using a real estate analogy:

1. The “ARV” is the Projected ROAS (Return on Ad Spend)

   - Based on years of historical data from the same brand.

2. The “Rehab Cost” is the CTPM (Cost to Print and Mail)

   - A fixed, known number before you invest.

3. The “Refinance” is the Two-Stage Distribution

   - The model is structured to pay you back 100% of your principal first.



While no investment is risk-free, this structure significantly de-risks the deal faster than
a typical real estate project.