Select any clauses present in your current lender quote to calculate structural liquidity drag (zero interest rates or APRs).
| Trap # & Clause | Competing Term-Sheet Trap | Loan Daddy LLC Wholesale Remediation | Est. Impact ($500K Base) |
|---|---|---|---|
| #1 Dutch vs. Non-Dutch Construction & Rehab Holdback InterestFlagged | Dutch Interest (Charged on 100% of Committed Loan Including Undrawn Rehab) | Non-Dutch Drawn-Balance Shelf (Interest Charged Strictly on Disbursed Funds) | $6,250 |
| #2 5-4-3-2-1 / Yield-Maintenance vs. Flexible 3-2-1 or Step-Down Exit StructureFlagged | 5-Year Hard Yield-Maintenance or Flat 5% Prepayment Lockout | 3-2-1 Step-Down, 2-1-0 Step-Down, or No-Prepay DSCR Shelf Option | $15,000 |
| #3 Sub-1.00x DSCR Liquid Reserve Multiplier Trap (12–18 Months PITIA) | 12–18 Months Post-Close Liquid PITIA Reserves Required | 3–6 Months PITIA Reserves (100% Retirement / Brokerage Accounts Eligible) | $18,000 |
| #4 Full Personal Guaranty vs. Non-Recourse (Bad-Boy Carveout Only) Execution | 100% Joint & Several Personal Recourse Across All Minority LLC Members | Non-Recourse Available (5–25u / Portfolio) or >20%–25% Key Principal Only | $5,000 |
| #5 6–12 Month ARV Cash-Out Seasoning Lockout (Cost-Basis Cap Trap)Flagged | Capped at 100% HUD-1 Purchase Cost Unless Held >6–12 Months | 90-Day Full Appraised ARV Cash-Out (Up to 75% LTV on Completed Rehab) | $37,500 |
| #6 20%+ AirDNA Short-Term Rental Expense Haircut & LTV Reduction | 20%–25% AirDNA Revenue Haircut + Automatic 5%–10% STR LTV Cut | 10% AirDNA Haircut or 100% Verified 12-Month Airbnb/VRBO T-12 Ledger at 80% Purchase LTV | $25,000 |
| #7 120%–125% Cross-Collateralized Portfolio Blanket Release Clause | 120%–125% Allocated Loan Paydown Required to Release Any Single Door | 110%–115% Release Clause or Individual Note Partitioning (Zero Cross-Default) | $12,500 |
| #8 Multi-Tier Holding + Operating LLC / Series LLC Underwriting Rejection | Last-Minute Underwriting Rejection of 2-Tier Holding LLC or Series LLC | Pre-Cleared 2-Tier Holding/Operating LLC, Series LLC (DE/TX/WY/IL) & Land Trust Desks | $4,500 |
| #9 Rural / 2–10 Acreage & Condotel 10%–15% LTV Haircut | 10%–15% Automatic LTV Cut on 2+ Acres, Non-Warrantable Condos, or Condotels | Up to 75%–80% LTV on 2–10 Acres & Dedicated Condotel / Resort DSCR Shelves | $25,000 |
| #10 Uncapped Backend Exit Fees & Punitive 30-Day Extension Fees | 1.0%–2.0% Backend Exit Fee Even When Refinancing + 1.5% Per 30-Day Extension | Zero Backend Exit Fee + Waived Exit Fee When Refinancing into Permanent DSCR | $7,500 |