Commercial real estate lending decisions come down to a handful of numbers, and in this episode Jason and Abraham put a real one on the table: an $800,000 loan request on a Burger King property in Vero Beach, Florida. This is the first episode of The Price Regulator, where the Price Capital Group team opens up an actual deal package and works through it on camera. Real property, real terms, real decision.
The Deal on the Table
A borrower who owns a freestanding Burger King free and clear needs $800,000 to bridge another deal he is working on. The property carries a 20 year triple net lease signed in 2022 with Burger King as the corporate tenant, producing $147,000 a year in net income. The borrower does not want to sell. He wants short term capital against a property with no existing debt on it.
Jason is upfront about one thing early: Price Capital Group would never buy a building like this. But lending against it is a different question entirely, and that distinction is the heart of the episode.
How to Value Commercial Property Like a Lender
The valuation math is where this deal gets interesting. At a 7 cap on $147,000 of net operating income, the property is worth roughly $2 million. Against an $800,000 loan, that puts the loan to value at 40 percent. Jason and Abraham typically lend at 65 to 70 percent LTV, so a 40 percent position is unusually low leverage. If the deal ever goes sideways, there is a wide cushion of equity protecting the loan.
The team also digs into why the current owner may have purchased at such a low cap rate in the first place. Their read: a likely 1031 exchange during the 2021 to 2022 window, when interest rates sat at 2 to 3 percent and exchange buyers needed to place money quickly.
The Loan Terms, Number by Number
Abraham lays out the full quote on camera. Loan amount of $800,000 at 11 percent interest. A nine month term, even though the borrower asked for six. Monthly payment of $7,333.33. Six months of interest reserves, about $44,000, collected upfront at closing and held in escrow so the borrower makes no out of pocket payments for half the term. A 2 percent origination fee, split one point to the broker who brought the deal and one point to Price Capital. A six month prepayment penalty, which sets the minimum interest on the deal at $44,000 no matter how early the borrower pays off.
With $147,000 in annual income against the debt service, the borrower covers the payment roughly two times over.
Why Private Lending Right Now
The episode also tells the story behind the strategy. When rates jumped from the 2s to the 7s between 2022 and 2023, buying stopped making sense on most deals, and banks tightened at the same time. Borrowers who still needed to close started looking for faster capital and were willing to pay higher rates to get it. That opening is why Price Capital shifted from acquiring properties to lending against them, using the same real estate underwriting skills to protect the money.
Jason and Abraham close on portfolio thinking: whether capital is better deployed across many smaller loans or concentrated in fewer large ones, and how spreading positions changes what happens when a single deal has a problem.
What Happens Next
The episode ends with a plan: drive the two hours to Vero Beach and walk the property in person before finalizing anything. That trip becomes an episode of The Route, because the rule at Price Capital is simple. Never lend on or buy a property you have not seen.
Watch the full breakdown above, and subscribe on YouTube for the next deal.