100% Investor Ownership — Three Equity Pathways
Investors own the SPV outright in every model. Devin governs; investors own. The difference between models is how much equity you deploy — which changes your cashflow, your risk, and your return profile. All models assume $800,000 average land cost, $3,500/m² construction, and 11% second-tier lending.
Three Models Compared
| Single Equity | Double Equity | Triple Equity | |
|---|---|---|---|
| Per investor | $250,000 | $500,000 | $750,000 |
| Total equity | $1,500,000 | $3,000,000 | $4,500,000 |
| Second-tier debt | $5,875,000 | $4,325,000 | $2,875,000 |
| Total project cost | $7,375,000 | $7,325,000 | $7,375,000 |
| Annual debt service @ 11% | $646,250 | $475,750 | $316,250 |
| Net Operating Income | $724,716 | $724,716 | $724,716 |
| Net cashflow to investors | $78,466 | $248,966 | $408,466 |
| Per investor cashflow | $13,078 | $41,494 | $68,078 |
| Cash-on-cash return | 5.2% | 8.3% | 9.1% |
| LVR | 80% | 59% | 39% |
| Asset value (8% cap) | $9,059,000 | $9,059,000 | $9,059,000 |
| Equity after refinance | $3,184,000 | $4,734,000 | $6,184,000 |
| Per investor equity at refi | $530,667 | $789,000 | $1,030,667 |
| Equity multiple (3yr) | 2.28× | 1.83× | 1.64× |
| IRR | ~25% | ~22% | ~20% |
Why More Equity = Higher Cash-on-Cash
Each extra dollar of equity avoids 11% interest — a guaranteed, risk-free return that lifts the blended yield.
Single Equity — 5.2%
$1.5M all working at the base project yield of 5.2%. Highest LVR at 80% — most leverage, highest risk, lowest absolute cashflow.
Double Equity — 8.3%
First $1.5M earns 5.2%. Second $1.5M earns 11% (avoided interest). Blended: 8.3%. LVR drops to 59% — much safer.
Triple Equity — 9.1%
First $1.5M at 5.2%. Next $3M at 11%. Blended: 9.1%. LVR just 39% — lowest risk, highest cashflow, bank-grade security.
Single Equity — $1.5M
Six investors at $250,000 each. Entry-level commitment. Maximum leverage.
Capital Deployment
| Phase | Item | Amount |
|---|---|---|
| Year 1 (Equity) | Land acquisition | $800,000 |
| Consents, design, professional fees | $350,000 | |
| Early works & site preparation | $350,000 | |
| Year 1 Equity Deployed | $1,500,000 | |
| Year 2 (Debt) | Construction — 1,350 m² @ $3,500/m² | $4,725,000 |
| Fit-out & furnishings (40 rooms) | $400,000 | |
| Devin oversight fee (paid monthly) | $500,000 | |
| Contingency | $250,000 | |
| Year 2 Bank Lending | $5,875,000 | |
| Total Project Cost | $7,375,000 | |
Double Equity — $3M
Six investors at $500,000 each. Stronger cashflow. Lower risk.
Capital Deployment
| Phase | Item | Amount |
|---|---|---|
| Year 1 (Equity) | Land acquisition | $800,000 |
| Consents, design, professional fees | $350,000 | |
| Early works & site preparation | $350,000 | |
| Year 1 Equity Deployed | $1,500,000 | |
| Year 2 (Equity + Debt) | Construction — 1,350 m² @ $3,500/m² | $4,725,000 |
| Fit-out & furnishings (40 rooms) | $400,000 | |
| Devin oversight fee (paid monthly) | $500,000 | |
| Contingency | $200,000 | |
| Year 2 total: $5,825,000 — funded by $1.5M equity + $4,325,000 bank lending | ||
| Year 2 Bank Lending | $4,325,000 | |
| Total Project Cost | $7,325,000 | |
Triple Equity — $4.5M
Six investors at $750,000 each ($250K/year over 3 years). Highest cashflow. Lowest risk. Bank-grade security.
Staged Deployment
Land + Consents + Early Works
Covers land acquisition ($800K), consenting ($350K), and site preparation ($350K). Total year 1 equity: $1.5M.
Reduces Construction Debt
$1.5M equity applied to Year 2 costs, reducing the bank debt draw from $5.875M to $4.325M. Interest saved: $165,000/year.
Pays Down Loan to 39% LVR
Final $1.5M pays the construction loan down to $2.875M. LVR drops from 59% to 39%. Interest saved: another $159,500/year.
Final Capital Structure
| Phase | Item | Amount |
|---|---|---|
| Year 1 (Equity) | Land acquisition | $800,000 |
| Consents, design, professional fees | $350,000 | |
| Early works & site preparation | $350,000 | |
| Year 2 (Equity + Debt) | Construction — 1,350 m² @ $3,500/m² | $4,725,000 |
| Fit-out & furnishings (40 rooms) | $400,000 | |
| Devin oversight fee (paid monthly) | $500,000 | |
| Contingency | $200,000 | |
| Drawn as $4,325,000 bank lending (after $1.5M Year 2 equity) | ||
| Year 3 (Equity) | Loan paydown | -$1,500,000 |
| Remaining Debt | $2,875,000 @ 11% | |
| Total Project Cost | $7,375,000 | |
Which Model Fits?
Single Equity
Lowest commitment per investor. Maximum leverage amplifies returns on exit but cashflow is thin. Best for investors comfortable with higher debt who want the entry-level position.
$13K/yr cashflow · $531K equity at refi · 80% LVR
Double Equity ★
The sweet spot. Cashflow triples vs single equity. LVR drops to 59% — below the bank comfort threshold. Strong cash-on-cash improvement without requiring the full $750K commitment.
$41K/yr cashflow · $789K equity at refi · 59% LVR
Triple Equity
Highest cashflow, lowest risk. 39% LVR is bank-grade. $68K/year per investor. Staged over 3 years so capital isn't all deployed upfront. Best for investors prioritising income over exit multiples.
$68K/yr cashflow · $1.03M equity at refi · 39% LVR
Important Notice
This page presents worked examples for illustrative purposes. It is not an investment offer, financial product disclosure, or projection of guaranteed returns. All figures are estimates based on $800,000 average land cost, $3,500/m² construction, and 11% second-tier lending. Actual returns vary with location, market conditions, and execution. Prospective investors must obtain independent legal, financial, and tax advice. Devin provides a governance framework — not development, project management, or financial advice.