40-Room Boarding House — A Governed Investment
A worked example showing how the Devin Framework delivers a boarding house investment with controlled risk, independent validation, and a transparent path from equity commitment through to stabilised income-producing asset.
Project Summary
100% Investor-Owned. Devin Governed.
The investors own the SPV that holds the asset outright. Devin provides the governance framework — not ownership, not project management, not financial advice. The structure separates capital ownership from operational governance.
🏦 Investors
Provide $1.5M equity. Own 100% of the SPV. All returns, capital growth, and refinancing proceeds flow to investors.
📋 SPV
Single-purpose vehicle holds the land and asset. Contracts directly with builder, QS, PM, and funder. Deploys capital under Devin's governed drawdown process.
🏗️ Delivery
Fixed-price builder at $3,500/m². Independent QS validates milestones. Independent PM manages daily oversight. Triple-signatory escrow release.
🏠 iLive Asset
40-room stabilised boarding house generating $983K pa. Professionally managed under the iLive platform. Refinance-ready asset.
Projected Returns
Conservative projections based on verified market rates for boarding house accommodation in New Zealand secondary cities. All figures in NZD.
Revenue & Operating Model
| Item | Per Week | Per Annum |
|---|---|---|
| 30 rooms × $500/week (90% occupancy) | $13,500 | $702,000 |
| 10 premium rooms × $600/week (90% occupancy) | $5,400 | $280,800 |
| Gross Revenue | $18,900 | $982,800 |
| Property management (8% of gross) | -$1,512 | -$78,624 |
| Rates, insurance, maintenance | -$1,200 | -$62,400 |
| Utilities & cleaning | -$960 | -$49,920 |
| iLive platform fee ($1,500/month) | -$346 | -$18,000 |
| Voids & contingencies (5%) | -$945 | -$49,140 |
| Net Operating Income | $13,937 | $724,716 |
| Debt servicing (Year 2+ — $5.35M @ 11% interest-only — 9% base + 2% commission) | -$11,317 | -$588,500 |
| Net Cashflow to Investors | $2,620 | $136,216 |
Capital Structure & Construction Budget
| Phase | Item | Amount | Notes |
|---|---|---|---|
| Year 1 | Land acquisition | $1,000,000 | Zoned for boarding house use |
| Consents, design, professional fees | $300,000 | Resource consent, building consent, architect, engineer | |
| Early works & site prep | $200,000 | Earthworks, services connections, foundations | |
| Year 1 Equity Deployed | $1,500,000 | ||
| Year 2 | Construction — 1,350 m² @ $3,500/m² | $4,725,000 | Fixed-price contract, QS-validated milestones |
| Fit-out & furnishings (40 rooms) | $400,000 | Beds, appliances, communal furniture | |
| Devin oversight fee | Paid monthly over construction period | ||
| Contingency | $225,000 | Held in escrow, released with triple sign-off | |
| Year 2 Bank Lending | $5,350,000 | Second-tier at 11% IO (9% base + 2% commission). Refinanceable to senior debt post-completion. | |
| Total Project Cost | $6,850,000 | $1.5M equity + $5.35M debt | |
Investor Return Metrics
Why the Devin SPV Structure
Different ownership structures produce different outcomes for risk, control, and tax efficiency. The Devin-governed SPV provides the strongest alignment of control and protection — critical when capital is deployed in a governed drawdown process.
Direct Individual Ownership
- Asset ControlFull
- Liability Protection❌ None
- Capital Raising❌ Difficult
- Governance❌ Informal
- Tax Efficiency⚠️ Limited
- Exit Flexibility⚠️ Asset sale only
SPV with Devin Governance
- Asset ControlFull (via SPV)
- Liability Protection✅ Ring-fenced
- Capital Raising✅ Structured
- Governance✅ Devin Framework
- Tax Efficiency✅ SPV structure
- Exit Flexibility✅ Share sale or refi
Trust Structure
- Asset Control⚠️ Trustee discretion
- Liability Protection✅ Good
- Capital Raising❌ Limited
- Governance⚠️ Trustee-dependent
- Tax Efficiency✅ Good
- Exit Flexibility⚠️ Constrained
Governance, Not Ownership
Devin does not take equity, does not hold funds, and does not act as project manager or developer. Devin supplies the framework licence, documentation architecture, and independent process compliance review.
Framework Licence
Annual licence to use the Devin governance architecture for the project. Covers documentation templates, milestone protocols, and the escrow validation framework.
Process Compliance
Independent review that drawdowns follow the triple-signatory protocol. Verification that QS, PM, and Owner approvals are in place before any payment release.
iProject Visibility
Real-time project visibility through the iProject portal. Investors and funders can observe progress, documentation, and financial drawdowns as they happen.
Oversight Fee
Fixed oversight fee for the project, paid monthly over the construction period. Covers the framework licence, compliance review, and iProject access for the life of the project. No equity taken. No performance fees. No hidden charges.
Oversight Fee Structure
Devin charges a fixed oversight fee, paid in equal monthly instalments over the construction period. This covers the full governance framework, compliance verification, and iProject portal access. No equity taken. No percentage of revenue. No performance fees. No hidden charges. This is the only fee Devin receives — it is not contingent on project returns, and Devin has no claim on the asset or its income.
Request the Full Investment Case
Includes detailed financial projections, sensitivity analysis, and the complete Devin governance framework documentation.
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This page presents a worked example for illustrative purposes. It is not an investment offer, financial product disclosure, or projection of guaranteed returns. All figures are estimates based on current market conditions and assumptions that may change. Prospective investors must obtain independent legal, financial, and tax advice. Devin provides a governance framework — not development, project management, or financial advice.