1. Capital Stack Design
• Identification of primary acquisition structure (subject-to, seller financing, hybrid structure)
• Determination of cash requirement gaps (closing costs, reserves, stabilization capital)
• Strategic layering of private capital without overleveraging the asset
This ensures the capital stack aligns with projected cash flow and long-term equity objectives.

2.  Risk Allocation Framework
• Defined return expectations for capital partners
• Clear documentation of repayment hierarchy
• Conservative underwriting assumptions
• Reserve allocation for vacancy and maintenance
This reduces ambiguity and protects both the operator and capital partner.

3. Equity Participation Modeling
• Structured equity splits tied to performance benchmarks
• Time-based or refinance-based exit planning
• Transparent appreciation projections using conservative market assumptions
Equity participation is designed to incentivize alignment rather than speculative upside.

4.  Cash Flow Stabilization Planning
• Targeted debt-to-income ratio for rental coverage
• Minimum 1.2–1.35 DSCR modeling (where applicable)
• Conservative rent assumptions below peak market comps
This prioritizes durability over aggressive growth.

5. Communication & Reporting Standards
• Defined reporting cadence for capital partners
• Quarterly performance summaries
• Clear performance metrics: NOI, cash flow, reserves, equity position

This elevates the relationship to institutional standards rather than informal agreements.