Did the gap on a straight 12-month note at 14 percent and the operator covered rent from month two. What's the fastest anyone here has seen a fresh RAL stabilize once the license was already in hand?
Saw a 6-bed in Akron stabilize in 47 days from first resident to full house. Operator already had a waitlist before the license cleared, which is the real variable nobody talks about enough. We came in on the capital side of that one at 13.5 on a 9-month note and the refi happened before month seven. The waitlist piece is what separated that deal from every slower one I've watched drag into month four or five still half-empty.
What state was the operator already licensed in before you closed?
Fourteen percent on a 12-month note and operator covering by month two only works when the license was already in hand before close, which most gap lenders never bother to verify before they wire. The one thing I have never seen work is an operator who promises to get licensed fast after closing. It always runs four to six months past their estimate and the carry destroys whatever margin you modeled going in. Had a contact in Cincinnati who lost nearly all his projected return on a 7-bed deal in 2022 exactly that way. Your $4,200 net on a Columbus 6-bed is solid, curious whether you are exiting into conventional or DSCR on the refi.
Fastest I watched was 31 days, Dayton, operator had a waitlist from a closed facility two miles away.
