{
  "$schema": "Investment Thresholds - Agents use these for go/no-go decisions",
  "verdict": {
    "PASS": "All primary criteria met, no dealbreakers",
    "FAIL": "Any dealbreaker present OR multiple primary criteria fail",
    "CONDITIONAL": "Marginal on some criteria but no dealbreakers"
  },
  "primaryCriteria": {
    "dscr": { "pass": 1.25, "conditional": 1.10, "fail": 1.0, "description": "Debt Service Coverage Ratio" },
    "capRateSpread": { "pass": 150, "conditional": 100, "fail": 50, "unit": "bps", "description": "Cap rate minus 10-Year Treasury yield in basis points" },
    "cashOnCash": { "pass": 0.08, "conditional": 0.05, "fail": 0.03, "description": "Annual cash flow / equity invested" },
    "debtYield": { "pass": 0.09, "conditional": 0.075, "fail": 0.065, "description": "NOI / loan amount" },
    "ltv": { "maxPass": 0.75, "maxConditional": 0.80, "fail": 0.85, "description": "Loan to value ratio; 100% LTV is a separate dealbreaker" }
  },
  "secondaryCriteria": {
    "occupancy": { "strong": 0.95, "acceptable": 0.90, "concern": 0.85, "distressed": 0.80 },
    "expenseRatio": { "excellent": 0.40, "good": 0.45, "acceptable": 0.50, "concern": 0.55 },
    "rentToMarket": { "upside": 0.90, "atMarket": 1.0, "aboveMarket": 1.05, "overpriced": 1.10 },
    "capRate": { "strong": 0.07, "acceptable": 0.055, "marginal": 0.045, "fail": 0.04 },
    "pricePerUnit": { "description": "Compared to market comps and replacement cost" }
  },
  "dealbreakers": [
    "Active title dispute or lis pendens",
    "Property in bankruptcy estate",
    "Dissolved entity ownership",
    "Active environmental contamination (unquantified)",
    "Demolition order or condemnation",
    "Criminal activity nexus",
    "Fraud in title chain",
    "DSCR below 0.80 without clear value-add thesis",
    "100% LTV proposed",
    "Interest-only period exceeds planned hold period",
    "Occupancy below 70% without committed bridge structure or funded lease-up plan",
    "Structural failure requiring demolition",
    "Uninsurable property condition"
  ],
  "riskScore": {
    "lowRisk": { "min": 90, "max": 100, "action": "Proceed with standard DD" },
    "lowMediumRisk": { "min": 75, "max": 89, "action": "Proceed with enhanced DD" },
    "mediumRisk": { "min": 60, "max": 74, "action": "Enhanced DD required, price adjustment likely" },
    "mediumHighRisk": { "min": 40, "max": 59, "action": "Significant concerns, major discount required" },
    "highRisk": { "min": 0, "max": 39, "action": "Not recommended" }
  },
  "strategyThresholds": {
    "core": { "minDSCR": 1.30, "maxHighRisks": 0, "maxMediumRisks": 2, "minRiskScore": 85 },
    "core-plus": { "minDSCR": 1.20, "maxHighRisks": 1, "maxMediumRisks": 3, "minRiskScore": 75 },
    "value-add": { "minDSCR": 1.0, "maxHighRisks": 2, "maxMediumRisks": 5, "minRiskScore": 60 },
    "opportunistic": { "minDSCR": 0.0, "maxHighRisks": 3, "maxMediumRisks": 10, "minRiskScore": 40 }
  },
  "dueDiligence": {
    "maxRedFlags": 3,
    "maxDataGaps": 5,
    "criticalRedFlagCategories": [
      "environmental-contamination",
      "structural-failure",
      "title-defect",
      "zoning-violation",
      "flood-zone-uninsurable"
    ],
    "minAgentsComplete": 5,
    "minCriticalAgentsComplete": 4,
    "criticalAgents": [
      "rent-roll-analyst",
      "opex-analyst",
      "environmental-review",
      "legal-title-review"
    ],
    "agentTimeouts": {
      "default_minutes": 30,
      "market-study_minutes": 45,
      "environmental-review_minutes": 45
    }
  },
  "underwriting": {
    "minIRR": 0.15,
    "minEquityMultiple": 1.8,
    "minDSCR": 1.25,
    "minCashOnCash": 0.08,
    "maxLTV": 0.75,
    "minScenariosPassingAll": 18,
    "totalScenarios": 27,
    "baseCase": {
      "minNOI": 0,
      "maxCapRate": 0.08,
      "minCapRate": 0.04
    },
    "stressTest": {
      "maxVacancyRate": 0.15,
      "maxExpenseRatio": 0.55,
      "maxInterestRate": 0.08
    }
  },
  "financing": {
    "maxLTV": 0.75,
    "minDSCR": 1.25,
    "maxInterestRate": 0.08,
    "minLoanTerm_years": 5,
    "maxOriginationFee_pct": 0.02,
    "minLenderQuotes": 3,
    "preferredLoanTypes": ["agency", "CMBS", "bank", "life-company"],
    "maxPrepaymentPenalty": "yield-maintenance",
    "agentTimeouts": {
      "default_minutes": 30,
      "lender-outreach_minutes": 60
    }
  },
  "legal": {
    "maxOpenViolations": 0,
    "maxTitleExceptions": 5,
    "requiredInsuranceCoverage": ["general-liability", "property", "umbrella", "flood"],
    "estoppelReturnRate_min_pct": 0.80,
    "maxEstoppelVariance_pct": 0.05,
    "maxPendingLitigation": 0,
    "criticalDocuments": [
      "title-commitment",
      "survey",
      "estoppel-certificates",
      "insurance-binders",
      "loan-documents"
    ],
    "agentTimeouts": {
      "default_minutes": 30,
      "estoppel-tracker_minutes": 90,
      "loan-doc-reviewer_minutes": 45
    }
  },
  "closing": {
    "requiredPreClosingItems": [
      "title-clear",
      "survey-approved",
      "insurance-bound",
      "loan-docs-signed",
      "estoppels-collected",
      "funds-wired"
    ],
    "maxClosingCostVariance_pct": 0.05,
    "requiredFundsFlowApprovals": ["buyer", "seller", "lender", "title-company"],
    "postClosingDeadline_days": 30,
    "agentTimeouts": {
      "default_minutes": 30,
      "funds-flow-manager_minutes": 45
    }
  }
}
