Replies to post #34375 on Primior Holdings Inc (PTKN)

[I ll be back]

Here's is where this gets legs for construction financing, if any is need that will fast track the underwriting.

Now picture John walking into that same GP’s office and saying, “We have $100M staked on Gaia right now, capital that’s ready to deploy instantly into quality deals.” That’s a completely different conversation.

As a general rule of thumb. The lender will require a loan that doesn't exceed a 65% (LTC) loan to cost. However, they will also require a debt coverage ratio of 1.65 based on the mtg. debt to estimated rental income. Which can mean a lower LTC and in turn delay the construction timeline. The problem for the developer is this final number isn't known until well into the project. Examples; plan review, construction bids which is all approved by the appraiser and banks underwriter.

With this option, the developer will have more flexibility in fast tracking the construction loan (again if needed) by setting up a 50% LTC in his performance. Once the project is completed and reaches a stabilization rate (occupancy) the construction loan is refinanced and, in many cases, returns a portion of the initial buy in to the investors under a non-taxable event. Which creates a win-win for all.

As I've shared before, finding projects will NOT be the issue with tokenization.