Most private capital chases yield by taking on ownership risk. This partnership is built to do the opposite: reduce risk while multiplying capacity. A $1M allocation — cash or line of credit — funds a rolling program of single-family acquisitions at an average ARV of $250,000, with an average loan of $175,000 per property. Every position is capped at 75% all-in LTV and exits through a guaranteed sale or refinance, so capital is continuously recycled rather than parked.
The result over a 24-month build: a $10M portfolio assembled without the lender ever holding title, managing a tenant, or carrying market risk on the asset itself.
The comparison below reflects the lender's own position: what $1M in strategic capital returns as a secured JV partner in the RPM program, versus deploying that capital directly into turnkey rental ownership.
Modeled on a 90-day refinance turnaround for fix-and-hold positions and the 80/20 hold-to-flip mix. The underlying return RPM pays is the same regardless of funding source — what differs is the PML's own cost of capital. Under Cash, the PML commits real dollars, so a cash-on-cash figure applies. Under the LOC option, the $100K facility fee is financed (rolled into the draw) rather than paid out of pocket, so the PML's out-of-pocket cash is $0 — the return is shown as a net dollar figure, after the interest the PML's own line accrues, not as "cash-on-cash."
Cash ROI = 24-month gross return ÷ 2, on the $1M committed. LOC "Own Borrow Cost" = the $100K facility fee itself (financed, not paid out of pocket) plus the interest that fee and active draws accrue at ~7.5% on the PML's own line. The $100K fee also counts against the facility, leaving $900K available for property loans — enough for Conservative and Base pace, but not Upside; scaling past ~20 acquisitions/year via the LOC option requires a larger facility or blended cash.
A cash allocation commits the full $1M from day one. Under the LOC option, the PML's own line carries a balance from day one too — the financed $100K fee sits on it immediately, before a single property loan funds — then climbs as draws go out to fund deals. In the Base scenario that balance peaks at $975,000 (97.5% of the $1M line), just under the ceiling.
The financed fee reduces the line's usable capacity to $900K for actual property loans — enough headroom for Conservative and Base pace, with roughly $25K to spare at the Base peak before the $1M ceiling binds.
Not every strategic partner is writing a $1M check. Smaller commitments — typically $50,000 to $100,000 — are pooled into the same overall facility, giving each partner fractional participation across the full rolling portfolio of ~40 acquisitions rather than exposure tied to any single property. Pricing doesn't change with size: every partner sits on the same 12% + 25% equity/profit terms, and the same facility fee structure on the LOC path. Size only changes the dollar amount — not the deal.
Base scenario shown; figures scale linearly with commitment size. The percentage return is identical at every tier — a $50K partner earns the same 41.0% cash / 28.9% net-on-LOC profile as the $1M anchor partner, just at proportional dollar terms.