Capital Insights

Compare Recapitalization Proposals on the Same Operating Case

By Don McClain

A refinancing shortfall can lead an owner to compare new debt, additional equity, an extension or a sale. Medro Advisors recommends using the same income, expense and improvement assumptions for each path. Examine cash required, ongoing payments, decision rights and exit obligations before choosing a structure. OCC refinance-risk guidance provides context; Don McClain’s analysis connects the funding requirement with the ownership decision. For non-owner-occupied one- to four-unit rentals, America’s Loan Source’s guide supplies a separate residential-investor starting point. Proposed capital remains subject to review and agreed terms. McClain is author of the forthcoming FUNDED.