Exit Strategy
Every deal looks good in the base case. This tool pressures your assumptions - sale price, budget, timeline, carrying costs - and shows you the deal that is left.
Educational estimate only. This tool is not an offer, quote, or underwriting decision, and its thresholds are illustrative - not 1st Private Capital lending criteria.
Base case in. Pressure on.
Blank counts as $0.
Blank counts as 0.
Debt service, taxes, insurance, utilities. Blank counts as $0.
Only if a refinance is part of the exit.
Enter at least a purchase price and an expected ARV or sale price to run the stress test.
The margin lines used in the readout (10% thin, negative under water) are illustrative reference points for reading the result - not 1st Private Capital underwriting thresholds. Actual structures depend on the full transaction.
Snapshots are stored only in this browser on this device - nothing is sent anywhere. Clearing site data removes them.
Educational estimate only. Nothing on this page is an offer, quote, rate indication, or underwriting decision. To send results to 1st Private Capital, copy or download them and paste the summary into the Exit strategy field on the Request a Term Sheet form - the form does not import them automatically yet.
No black box. Here is every formula.
The whole calculation runs in your browser. Nothing you type is sent anywhere.
purchase price + renovation budget + (hold months x monthly carrying cost)
The all-in cost of getting to the exit.
purchase + renovation x (1 + reno stress) + (hold + extra months) x carry x (1 + financing stress)
The same cost with your budget overrun, longer timeline, and higher monthly costs applied.
expected ARV/sale x (1 - sale price cut) x (1 - ARV cut)
Both price cuts apply to the same figure and compound - use one or both.
profit = sale proceeds - project cost; margin = profit / sale proceeds
Computed for the base case and the stressed case, side by side. Selling costs are not modeled - add them to carrying costs if you want them included.
refinance proceeds / total project cost (stressed: proceeds x (1 - refi cut) / stressed cost)
If a refinance is the exit, coverage of 100% or more means projected proceeds repay the full project cost.
The stressed case is the honest case.
The sale price that pencils today is not guaranteed at the exit. A deal that survives a price haircut is a deal, not a bet.
Extra months mean extra carrying cost on top of the overrun itself - the two stresses compound, which is exactly what this tool shows.
Every strong bridge deal has a clear exit - a sale or a refinance. Stressing the exit before you commit is how you find out if it is actually clear.
The exit strategy is one of the seven items 1st Private Capital asks for on every deal. See the Hard Money page.
Deal Holds Up?
Paste your results into the request form and get real terms on the real deal.