Tommy DobczykOpportunity Zone Advisor, OZ Wizard · Director of Development | Certified Opportunity Zone Advisor

Mastering Deals: Bank Loans, Investor Equity & Fees Explained! #shorts

19 Aug 2026 · 1 min

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0:52

In this short, Tommy Dobczyk walks through a real‑estate acquisition financing structure. He notes the deal’s Debt Service Coverage (DSC) ratio sits at 1.31, indicating it’s feasible. The capital stack combines a bank loan, seller‑carry financing, and private investor equity, potentially supplemented by a pre‑sale. He outlines how to structure investor preferred returns at 8‑10% with either a 50/50 or 40/60 split, and suggests charging an acquisition fee of 1‑2% of the purchase price. Finally, he proposes that instead of paying traditional bank interest, the sponsor could use the equity investors’ preferred return as the cost of capital, making the deal more affordable for the buyer.

Chapters

And so here we can try doing it all that way. Breaks it all down, showing— keep going. Our DSC, the way that we have it structured right there, uh, has us at a 1.31. So that is still doable, right? Um, bank loan, seller carry, private investor equity, this pre-sale, right? So keep going down. So we can do preferred returns on the investor side, do 8-10% preferred returns with a 50/50 split or 40 split. We can do an acquisition fee of 1-2%. They can be able to afford it. That's done, you know, instead of having— instead of paying the bank debt interest, why not pay investors equity interest? Right.