Risk & Structure Playbook
Structure is insurance. Interviews test whether you can match the risk to the protection, not just list random covenants.
The lender principle
The line that wins interviews
“I don’t start with structure. I start with what breaks the deal—timing, NOI, or market—and then I structure protections to reduce loss severity and preserve control.”
Risk → Protection mapping
Timing / execution risk
- Interest reserve sized to realistic timeline
- Milestones (leases signed, permits, delivery)
- Capex controls tied to scope
Cash flow / NOI risk
- Springing cash management
- Performance triggers (NOI / occupancy)
- DSCR/DY tests + reporting
Market / exit risk
- Lower leverage / more equity
- Extension terms + fees clearly defined
- Rate caps / hedging requirements
How to talk about structure (without sounding generic)
Use this phrasing
- “Because the main risk is timing, I want reserves and milestones.”
- “Because the main risk is NOI volatility, I want cash management and triggers.”
- “Because the main risk is exit liquidity, I want lower proceeds and clear extension mechanics.”