I know we’re not the first to structure a deal this way.

Different exits require different debt structures.

Are you sticking with conventional loans, moving toward DSCR-style structures, or mixing strategies depending on deal size?

Btw, the use of inserting mezz into the capital structure years down the line was approved unanimously by the LPs - although we only needed a majority for approval.  

I’ve been spending more time lately on deal structure than deal sourcing, and I’m curious how others are approaching this on flips and BRRRR projects.What I’m seeing is that many deals don’t fail because the purchase price was wrong—they fail because the structure didn’t match the project.

"Would you say that looking back, going through the legwork of establishing a Reg D entity was worthwhile for you on that deal in comparison to just establishing a basic LLC structure with multiple members?"

@Austin Johnsoni'm not getting cash flow on deals right now but I only buy on BRRRR or seller financecan't shell out giant down payments and wait 20 years to recoup

I’ve noticed more landlords moving away from traditional income-heavy lending and focusing more on property cash flow structures like DSCR thinking.

When the right deal shows up, you’ll be motivated to put the structure together because you’ll have a real asset to protect.

Let's say instead of this structure they just charged a flat $350 per month for all properties and that brought in the same revenue for them.