Sharing a real underwriting example here so you can see exactly how we protect capital at Aces Capital. Two key points about our structure: - We share that we only lend in 1st position, so our capital sits senior to all other debt. - We lend under the “as-is” value” of the property, not some optimistic future number, which builds in a clear margin of safety if things don’t go as planned. - By combining senior position with conservative as‑is value, we actively mitigate downside risk while still targeting strong, consistent returns. If you want to walk through the underwriting, check out the example I’m sharing now!

I had someone reach out about a lending opportunity in OR. These were the stats she gave me: Purchase Price: 385,000 Rehab: 17,000 -80,000 ARV: 550,000-570,000 Total Spread: 570,000 - 17,000 - 385,000 = 168,000 It looked good, but I had to decline...because there was no buffer, she's taking the high end of ARV and low end on the rehab. Costs to sell were not included, nor were there carrying costs for the life of the rehab. Updated Numbers: PP: 385,000 Rehab: 80,000 Buffer: 16,000 ARV: 550,000 Carrying Costs: 23,500 Cost to sell: 55,000 Total Spread: -9,500 This was a no go.

Solo 401(k) considerations The group covered when a Solo 401(k) makes sense, including self employment income requirements, compliance rules, and administrative responsibilities. A real example showed how plans can be unintentionally disqualified if details are overlooked. Health and recovery realities There was an open discussion around recovery after a serious health event, focusing on medication management, nutrient interactions, and the need for consistent monitoring with complex medical situations. Accounts receivable backed lending The conversation explored short term loans secured by accounts receivable and how they differ from real estate backed lending. Topics included borrower quality, verification of receivables, risk controls, and where this type of lending may or may not fit. Business acquisition paths Different strategies for acquiring service based businesses were discussed, including improving underperforming companies versus building a broader portfolio. The emphasis was on being clear about strategy and not overcomplicating early decisions. Simplifying under pressure A real scenario highlighted the risks of juggling too many deals at once. The group focused on narrowing scope, stabilizing cash flow, and simplifying efforts during high stress periods. Connections and introductions Several points in the discussion led to potential introductions between members, reinforcing that these calls are not just educational but also a place where relevant connections are made. Overall takeaway The recurring theme was focus, risk awareness, and thoughtful decision making, combined with practical peer support and relationship building.

This early 2026 article (still relevant industry-wide) details wealth managers suing RE entities over a $1M+ Ponzi using fake notes & "quick flips." Funds diverted to fake early returns. Key Lesson: Do not chase the shiny high yields. Safety Basics: - Perfect your liens first. - Demand vetted operators + clean books. - Prioritize consistency over chasing 20% unicorns—8-12% compounds safer. - Trust your gut and do not try to make the numbers work Your take? Biggest red flag in deals? Drop below. Feel free to reach out to learn more how Jon and I structure deals for max security. Article, here

Here's the PML Coffee Break. February 10 Recap Good conversation during this week’s PML Coffee Break. Sharing a quick recap for anyone who could not make it. Self Directed IRAs and 401(k)s We talked through the real world pros and cons of using self directed retirement accounts for real estate. That included reporting requirements, when loans are allowed, and how people think about flexibility and tax considerations when these accounts are used correctly. Property Management Challenges and Best Practices Several people shared experiences with property managers. Everything from poor communication to lack of oversight. A common theme was the importance of staying involved, conducting regular inspections, and setting clear expectations rather than assuming someone else will care for your asset the way you do. Regulatory Considerations Around Capital Conversations We discussed how nuanced securities regulations can be and why being thoughtful about public communication matters. It was a good reminder that education and compliance need to go hand in hand. Exploring Business Acquisitions I shared that I am spending more time exploring business acquisitions as an alternative path. We talked through how I am approaching research and the value of learning from people who focus specifically on buying and operating businesses. Underwriting Multifamily Deals Kia shared her approach to evaluating multifamily opportunities, with an emphasis on conservative underwriting, understanding cash flow assumptions, and leaning on education and community before moving forward. We host these PML Coffee Breaks every week at 11 AM Eastern. It’s an informal conversation and mostly just people comparing notes and sharing what they’re seeing. If sitting in on a future conversation would be helpful, feel free to reach out.