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90 Madison Ave Refinance Proposal - 90 Madison Ave, Albany, NY 12202.pdf

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90 Madison Restructuring Mortgage Responsibility to Solely the DAO Entity BLUF (Bottom-Line Up Front) This proposal aims to shift the mortgage responsibility for 90 Madison Ave to the DAO, relieving co-owner Earl Co of payments and increasing DAO cash flow in both the short-term and long-term. The plan involves refinancing the current ~$183,457 balance to a new 30-year fixed-rate mortgage below 7.25%. Earl will lower his property management fee from 25% to 15%. This move is projected to improve

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90 Madison Restructuring Mortgage Responsibility to Solely the DAO Entity
BLUF (Bottom-Line Up Front)
This proposal aims to shift the mortgage responsibility for 90 Madison Ave to the DAO, relieving
co-owner Earl Co of payments and increasing DAO cash flow in both the short-term and
long-term. The plan involves refinancing the current ~$183,457 balance to a new 30-year
fixed-rate mortgage below 7.25%. Earl will lower his property management fee from 25% to
15%. This move is projected to improve cash flow, increase property yield, and enhance the
DAO's financial stability.
Current (left) vs proposed (right) based on historical 12-month averages

Objective
The purpose of this proposal is to amend the co-ownership structure of the DAO to relieve
co-owner Earl from the financial burden of paying the mortgage on the property at 90 Madison
Ave, Albany, NY, and increase both the short-term and long-term yield of the property. The DAO
will transition to a new 30-year fixed-rate mortgage with a lower interest rate. This restructuring
aims to enhance financial stability, reduce long-term costs, and align the DAO's interests with

sustainable cash flow and equity preservation. The DAO negotiated with Earl already and he
would be willing to drop his Property Management fee down from 25% to 15%.
Background
The current mortgage on the property, originally $199,500 at 10.125%, has a current balance of
~$183,457 (as of July 22 2025). Earl has been responsible for mortgage payments, but recent
discussions within the DAO have highlighted the potential benefits of refinancing this loan under
the DAO's control. Over the past 12 months, the property generated an average monthly rent of
$7,112.95. With a PM fee lowered to 15%, the operational and maintenance expenses over the
previous 12 months have averaged $4,609.84, leaving a net cash flow that can support this
transition. The DAO has identified an opportunity to secure a lower interest rate, reducing
overall costs and improving yield for token holders.
Proposed Plan
1. Loan Refinancing:
●​ Refinance the existing ~$183,457 outstanding balance into a brand new 30-year fixedinterest rate mortgage.
●​ Targeting a loan with an interest rate below 7.25%.
●​ Monthly P+I amortization payments at respective Interest rates:
○​ 6.75%: $1,255
○​ 7%: $1,287
○​ 7.25%: $1,320
●​ Closing costs (~$10,000) will be rolled into the loan, increasing the principal but
manageable within the DAO’s cash flow.
2. DAO Assumption of Payments:
●​ The DAO will own complete responsibility for the mortgage P+I payments, relieving Earl
of this obligation.
●​ In return, Earl will reduce his PM fees immediately to 15%, on closing of the ReFi
●​ Remaining cash after P+I (with avg $7,112 rent and $4,609 expenses):
○​ 6.75%: $1,248/month
○​ 7%: $1,216/month
○​ 7.25%: $1,183
●​ Monthly OR set-aside: whatever the P&I ends up being (approximately $1200/month) will
be set aside for the OR. For example, $1200 of August’s cash flow will be designated to
pay September’s mortgage.
●​ On top of the monthly set-aside, an additional 10% of NOI shall be paid into the OR. This
shall accrue infinitely and be set aside for mortgage stability, covering multiple months of
payments during slow months. The mortgage is paid from the OR.
●​ If the DAO is unable to make payments for any reason, a DAO member may make
payments on behalf of the DAO. They will be allocated and issued dilutive tokens at a
$50 par value. This is only to be invoked in an emergency where the DAO cannot
service the loan itself.