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Frequently Asked Questions
Everything You Need to Know
What types of properties does Pacifica Destinations Group acquire?
We specialize in boutique hospitality, resort class destination properties,
RV parks, specialty lodging assets, and legacy estates. All acquisitions target
income producing, legacy oriented assets in the $3M–$15M range.
How does the DSCR based underwriting model work?
DSCR (Debt Service Coverage Ratio) is our primary income qualification metric. It confirms
the asset's net operating income covers its debt obligations before any distribution occurs.
The standard minimum DSCR is 1.25x. We require a minimum of 2.50x and above.
Why doesn't Pacifica rely on personal credit for acquisitions?
Traditional financing relies on personal credit, W-2 income, and blanket capital verification.
Our model inverts that approach, meaning the asset performs first. Income qualifies the deal, and the property itself serves as primary collateral. This creates certainty for all parties.
What is the 23 Day Close Protocol?
Our disciplined five phase execution model moves from discovery (Days 1–3) through commitment, alignment, qualification, and stewardship transfer (Days 21–23). This timeline
is achieved when asset qualification, title integrity, and underwriting conditions are satisfied.
What is EMSA, and how does it replace earnest money?
The Execution & Marketability Security Agreement (EMSA) is executed on Day One of mutual agreement. It secures execution before capital is exposed, allows verification before funding,
and prevents premature proof of funds. It is fully contract-based with complete transparency.
How is asset structured legally?
Each asset is held in its own single-purpose Limited Liability Company (LLC). This
provides clear legal separation, manager-managed authority, segregated funds, lender
priority language, and defined distribution waterfalls.
What is the 80/45/25 Pacifica Structure?
This refers to our capital stack discipline: 80% is the ceiling of consideration relative to
verified asset value, 45% is the recorded consideration on deed and settlement statement,
and 25% is the documented lender position with equity reserve.
What is the 70% Total Stack Rule?
The combined total of all debt against the asset, acquisition loan plus any existing loan payoff, must not exceed 78% of confirmed asset value. Transactions exceeding this threshold are restructured or declined.
What states does Pacifica operate in?
We operate across Texas, Florida, Arizona, Georgia, Tennessee, Nevada, North Carolina,
and select national markets. Our target acquisition range is $3M–$15M per asset.
How are funds disbursed in a transaction?
All funds are received and released through escrow per written, signed instructions.
Title controls the movement of funds. No disbursement occurs without lender
approval and an executed settlement statement.
What documentation is provided during the transaction process?
Documentation includes Verification of Deposit (VOD) during the Alignment Phase (Days 8–14), Capital Qualification Letter upon asset qualification, Legal Opinion Letter upon request,
Principal Identity Documentation, and Offer Memorandum with NOI Summary.
Why doesn't Pacifica provide blanket proof of funds upfront?
Capital is allocated asset by asset, not speculatively. Funds are committed across
multiple assets simultaneously, and financial disclosure occurs at the appropriate
transaction stage after the asset has been qualified.
How does Pacifica protect Real Estate Agents and Brokers?
Agents receive escrow-paid commissions with documented instructions, timeline
certainty through the 23-day close model, reduced fallout from a structured buyer
with execution locked at Day One, and professional institutional documentation.
How are lenders protected in a Pacifica transaction?
Lenders benefit from low leverage at a 25% position providing significant equity cushion,
DSCR discipline ensuring income-first qualification, collateral priority through the Operating Agreement's lender-first waterfall, and clean single-purpose LLC documentation.
How are sellers protected when working with Pacifica?
Sellers receive certainty of close through the EMSA executed from Day One, speed
with a 23 day or less timeline, reduced risk with institutional backing, and clean exits
with all payoffs and disbursements handled through escrow.
What is Pacifica's approach to refinancing?
Every acquisition is underwritten with a defined hold and exit path. Refinance is a standard
hold and harvest tool that returns seasoned equity to capital partners after stabilization
without requiring a sale event. The same DSCR, cap rate, and LTV standards apply.
What is the cap rate spread requirement?
The cap rate must exceed the debt rate by at least 150 basis points (1.50%).
When this spread is maintained, the asset produces income above its financing cost.
Transactions that don't satisfy this spread are restructured or declined.
How does Pacifica stress test acquisitions?
Every acquisition undergoes a 10% NOI stress test. If the adjusted NOI
(reduced by 10%) still maintains qualifying DSCR above 1.25x, the asset proceeds.
If not, additional reserves are required before the transaction moves forward.
What is Pacifica's charitable commitment?
As part of our standard structure, 1% of every transaction is allocated to
the Chashah Monastery, a US-based nonprofit. We believe capital carries
responsibility and give back to the communities we serve.
How do I submit an asset for consideration?
Submit asset details including property information, financials, and seller situation. We review
fit against income, DSCR, cap rate, and capital stack criteria. Capital is then assigned to qualified assets, EMSA is executed, escrow is opened, and the 23-day close is initiated.
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