$2.5M DSCR Cash-Out · Five Destinations · One Umbrella
A chart-centric kick-off memo mapping the $2.5M DSCR cash-out from the Florida holding-co portfolio into five disbursement buckets — alternative-yield investments, the AUM platform at 7% monthly (which covers DSCR debt service plus director-asset carry), $1M into the Consortium Law Legal Vertical (Greg E. give-and-go, MVA seed, SBA seed), and a holding-co reserve. Law-vertical maturity steady-state: ~$2.12M/month per the Law Vertical memo.
The Brief
01 — The Master Disbursement
DSCR cash-out refinance against the Florida properties held in the holding company produces $2,500,000 in deployable capital. Joe’s allocation: $500K alternative-yield investments, $500K AUM platform (which generates the cash flow that covers the new DSCR debt service plus carry on two director assets), and $1M into the Consortium Law Legal Vertical. $500K is reserved for closing costs and holding-company working capital.
02 — $500K into a Targeted-Yield Basket
The first $500K seeds the operator-side alternative-investment basket — positions Joe is already underwriting independently. Three named programs at kick-off: the car-finance program, the warranty program, and the Dealer Plan Correction position. The basket is structured to compound off the holding-co balance sheet, separate from the Consortium Law settlement-revenue cycle and separate from the AUM platform’s DSCR-coverage role.
Read this honestly. Per-program allocations inside the $500K are a Joe-and-Sean call — the kick-off deck shows the three named positions but does not lock the split. Underwriting on each program lives with Joe; the basket sits on the holding-co balance sheet alongside the FL portfolio.
03 — $500K into AUM at 7%/mo — the Self-Servicing Loop
$500K of the cash-out is parked in the AUM platform at 7% monthly ROI, generating $35,000 / month of cash flow. The DSCR loan that produced the $2.5M carries a monthly debt-service requirement of $33,000. The AUM output covers the new debt-service in full, with the remaining ~$2,000 / month directed to carry on the two director assets — 818 N 46th St, Hollywood FL and 24–36 Dempsey Ave, Edgewater NJ. The whole loop is self-servicing.
Why this matters. The $2.5M DSCR loan does not eat into the rest of the disbursement. It services itself out of the smallest single bucket and carries the two director assets at the same time. Buckets 1 and 3 are not weighed down by debt-service drag.
04 — $1M into the Legal Vertical — Four Sub-Buckets
The $1M is the kick-off capital for the Law Vertical described in the cc-law-vertical memo (V1 LAD SaaS, V2 Consortium Marketing PI funnel, V3 Day Law). Joe’s named carve-outs inside the $1M: $250K for the Greg E. “Case Cash” give-and-go (third-party case-funding with a secured-note recycle — see next slide); $125K seeds 50 MVA cases on the same recycle mechanic; $250K seeds SBA business-purchase positions under the Law umbrella; $375K reserved for vertical stand-up (LAD SaaS build runway, Day Law stand-up costs, Consortium Marketing JV stand-up, operating reserves during the cash-lag window).
05 — The Recycle Mechanic — How $250K Works Twice
Consortium deploys $250K to fund a third-party case tape on quick-turnaround economics. Greg E. then lends $250K back to Consortium as a secured note, collateralized by the face value of the same tape Consortium just funded. Greg recycles his $250K plus his profit through the structure — the secured note protects him; Consortium gets its $250K back into deployable form while continuing to hold the case-tape upside. Same mechanic applies to the $125K MVA sub-bucket: Consortium funds the 50-case MVA tape, Greg secures-notes the principal back.
Same mechanic on Bucket 3b ($125K MVA). Consortium funds 50 MVA cases out of $125K; Greg secures-notes the $125K back; Consortium keeps the upside on the MVA tape and the $125K redeploys. Documentation: secured note + UCC-1 on the tape; structure reviewed by Robert before close.
06 — What the $1M Builds Toward
The $1M kicks off the three avenues described in the cc-law-vertical memo. Once the SaaS firms are onboarded, the marketing-funnel case-flow matures, and Day Law is processing at design capacity, the Law Vertical generates ~$2.12M / month, $25.47M / year. The Greg give-and-go inside Sub-Bucket A is the cash-flow shock-absorber that lets Consortium hold the case-tape upside without locking principal during the V2/V3 lag window.
| # | Avenue | Unit math | Monthly | Annual |
|---|---|---|---|---|
| V1 | Law All Day (SaaS) | 10 firms × 20 cases × $300 | $60,000 | $720,000 |
| V2 | Consortium Marketing (PI funnel) | 10 cases × $1,000,000 × 33% × 50% | $1,650,000 | $19,800,000 |
| V3 | Day Law (MVA / CMVA / WC) | 25 cases × $50,000 × 33% | $412,500 | $4,950,000 |
| Consortium Law — combined steady-state | three engines rolling | $2,122,500 | $25,470,000 |
How the $1M kick-off maps into the Law Vertical
V1 (LAD) — the $375K stand-up reserve covers product runway during the August 2026 → Q1 2027 onboarding ramp. LAD MRR settles directly with subscriber firms — no ABS routing required.
V2 (Marketing) — the Greg give-and-go on Sub-Bucket A funds early third-party case-tape positions while the lawyer-John contract is being closed. Cash on the contracted cases lands 18–36 months later.
V3 (Day Law) — the $125K MVA seed brings 50 cases into Day Law’s pipeline; the same Greg recycle keeps principal redeployable. Day Law’s steady-state 25 cases/month × $50K × 33% lands as Consortium net via the ABS.
07 — The Roll-up — Every Dollar of the $2.5M
All five buckets — with their monthly cash-flow contribution at steady state. The AUM bucket’s output is offset against DSCR + carry (net zero into the holding-co). The Law Vertical’s steady-state contribution is the Consortium share post-ABS.
| # | Bucket | Capital | Cash-flow role | Monthly @ steady state |
|---|---|---|---|---|
| B1 | Alternative Investments | $500,000 | Yield basket (TBD per-program split) | yield-dependent |
| B2 | AUM Platform @ 7%/mo | $500,000 | $35K/mo — covers $33K DSCR + ~$2K director carry | $0 net drag |
| B3 | Consortium Law Legal Vertical | $1,000,000 | V1 SaaS + V2 funnel + V3 Day Law (matures 18–36 mo) | $2,122,500 |
| B4 | Holding-Co Working Capital | $500,000 | Closing costs + holding-co operating reserve | reserve |
| Total disbursement | $2,500,000 | five buckets · one holding-co | $2.12M+ / mo |
Critical timing caveats
B2 (AUM) goes live in month one — the DSCR loan starts servicing itself from the first monthly payment.
B3 (Law Vertical) — V1 LAD MRR is the first cash through the door (Aug 2026 onboarding, $60K MRR target by Q1 2027). V2 + V3 settlements compound behind it on the 6–36 month lag.
B1 (Alt Investments) — per-program yield TBD by Joe; basket sits on the holding-co balance sheet independent of the law cycle.
B4 reserve — default use is closing costs and working capital. Joe + Sean to confirm allocation before disbursement.
08 — Priority — First 90 Days
Disciplined ease-times-leverage ordering. AUM kicks first because it self-services the DSCR loan that produced the capital. Greg give-and-go and MVA seed kick second because they put principal to work twice (recycle mechanic) while the Law Vertical’s cash-cycle compounds in the background. LAD SaaS onboarding kicks third because it’s the first true cash through the door from the Law Vertical itself.