Maya’s IRR model crumbled. The debt service coverage ratio (DSCR) fell below 1.0x. The senior lender, Continental Bank , issued a default notice. They wanted an additional $30M equity cushion or they’d seize the asset.
But Maya saw the opportunity. Her bonus would be $1.2M. She could buy her mother a house. She signed. Six months later, construction was underway. Then the cracks appeared—literally. real estate finance & investments risks and opportunities
The Foundation of Ashes