Learn more about the Community Lending DAO here.

Community Lending DAO Proposal

Entity: Bobcat LFTY 0444 DAO LLC
Property Asset: 5604 Brownfield Dr.

Executive Summary

This proposal outlines a strategic plan to finalize the stabilization of 5604 Brownfield Dr. by establishing a Community Lending DAO.

This entity will serve as the transitional lender on the property until January 2027, at which point the underlying land plots will be legally separated and permanently refinanced to restore regular property cash flow.

Loan Structure and Capital Breakdown

The total capital allocation required for restructuring and stabilization remains $2,700,000.

• First-Lien Settlement: $2,500,000 allocated to the first-lien holder, Willful Properties.
• Management Reimbursement and Arrears: $200,000 allocated to Whalec Property Management LLC / Alec Van Beek, consisting of:
  • $150,000 in fronted stabilization debt principal.
  • $50,000 in outstanding property management fees.
  • $0 of these accrued management fees have been paid to date.
• Tokenization Breakdown: The total $2,700,000 debt will be divided into 54,000 fractional Community Lending Tokens valued at $50 each.
• Amortization Schedule: The loan will fully amortize over a standard 30-year schedule, with payments and amortization beginning on September 1, 2026.
• Annual Yield: Each $50 token will carry an 8% annual yield.

Per-Token Payout Structure

Based on a 30-year amortization schedule, the fixed debt service will be:

• Monthly: $0.37 per token, representing a total combined system payout of $19,811.47.
• Annually: $4.40 per token, representing a total combined system payout of $237,737.64.

Prepayment Terms

There will be no prepayment penalty. The debt may be paid off or refinanced at any time without additional fees, allowing for a seamless transition during the planned January 2027 restructuring.

Token Holder Returns and Distribution Timeline

Payouts will begin on September 1, 2026, allowing sufficient time to establish the necessary capital reserves.

Principal Repayment

Every Community Lending Token purchase will function directly as a principal payment against the property’s underlying debt structure.

Token Purchase Bonus: Forfeited Equity Match

To provide immediate upside for incoming capital, this proposal introduces a direct equity match using forfeited company treasury tokens.

1:1 Forfeited Equity Match

For every $50 Community Lending Token purchased, the buyer will receive one token of Austin Hughes’ forfeited equity in Bobcat LFTY 0444 DAO LLC.

This equity will be distributed on a 1:1 basis until the forfeited pool of 4,161 tokens has been fully exhausted.

Investor Upside

The matched equity will grant incoming lenders a direct ownership interest in the LLC, creating an opportunity to realize additional returns through a future property refinance or the sale of one or more plots.

Funding Provision and Fee Restructuring

To align management incentives with successful community capitalization, this proposal introduces a conditional fee waiver based on reaching the operational funding target.

$100,000 Funding Milestone

Once the Community Lending DAO successfully raises $100,000, which is the threshold expected to comfortably secure the property’s short-term requirements, the following changes will take effect:

• Full Fee Waiver: The $50,000 in past-due property management fees will be waived and forgiven in full.
• Going-Forward Rate Reduction: The ongoing property management fee will be permanently reduced to 10%.

Risk Mitigation and Capital Distribution Hierarchy

Lien Positions

In the event that Bobcat LFTY 0444 DAO LLC defaults on the transitional debt, the security positions will be:

• First Lien: Willful Properties.
• Second Lien: Community Lending DAO.

Liquidity Distribution Waterfall

Upon any capital event, including token redemptions, a property refinance, the sale of individual plots, or the sale of the entire property, funds will be distributed toward outstanding secondary obligations using a 2:1 pro-rata ratio.

• For every $2 distributed toward the capital balance owed to Whalec Property Management LLC / Alec Van Beek, $1 will be distributed toward the Community Lending DAO’s outstanding principal balance.
• This distribution structure will remain in place until both obligations have been fully satisfied.

Default Trigger and Foreclosure Remedy

A material event of default will be triggered automatically if Bobcat LFTY 0444 DAO LLC fails to make the required debt service payments for 60 consecutive days.

Upon default:

• The Community Lending DAO will retain its second-lien position behind Willful Properties.
• The Community Lending DAO will have the immediate legal right to foreclose on 100% of the remaining equity in Bobcat LFTY 0444 DAO LLC.
• Through foreclosure, the Community Lending DAO may assume full operational and ownership control of the LLC and its underlying real estate assets to protect token holder principal.

Timeline to Stabilization

Present Through August 2026

Raise immediate capital with a $100,000 target.

• The 1:1 forfeited equity match will remain active for up to 4,161 tokens.
• Once the $100,000 funding milestone is reached:
  • $50,000 in outstanding property management fees will be waived.
  • The ongoing property management fee will be permanently reduced to 10%.

September 1, 2026

Token payouts and the 30-year amortization schedule begin.

• 8% annual token yield.
• Approximately $0.37 per month for each $50 token.

January 2027

Legal separation of the underlying plots and permanent refinancing.

• No prepayment penalty will apply, allowing for a clean exit from the transitional debt.

Following the Permanent Refinance

The debt will be restructured through the 2:1 distribution waterfall, and the property will resume regular cash flow.

• A 60-day payment delinquency at any point will trigger the default and foreclosure provisions described above.