RealVest Real Estate MCP Server

export class HardMoneyLoanCalculator { getSchema() { return { type: 'object', properties: { loan_details: { type: 'object', properties: { loan_amount: { type: 'number', minimum: 1000 }, property_value: { type: 'number', minimum: 1000 }, interest_rate: { type: 'number', minimum: 0, maximum: 30 }, loan_term_months: { type: 'number', minimum: 1, maximum: 60 }, points: { type: 'number', minimum: 0, maximum: 10 }, origination_fee: { type: 'number', minimum: 0, maximum: 10 }, payment_type: { type: 'string', enum: ['interest_only', 'principal_and_interest', 'balloon'] } }, required: ['loan_amount', 'property_value', 'interest_rate', 'loan_term_months', 'payment_type'] }, project_details: { type: 'object', properties: { project_type: { type: 'string', enum: ['fix_flip', 'ground_up_construction', 'heavy_rehab', 'light_rehab', 'buy_hold', 'refinance'] }, purchase_price: { type: 'number', minimum: 0 }, rehab_budget: { type: 'number', minimum: 0 }, after_repair_value: { type: 'number', minimum: 0 }, project_timeline_months: { type: 'number', minimum: 1, maximum: 36 }, construction_draws: { type: 'boolean' } } }, borrower_profile: { type: 'object', properties: { experience_level: { type: 'string', enum: ['beginner', 'intermediate', 'experienced', 'expert'] }, credit_score: { type: 'number', minimum: 300, maximum: 850 }, liquid_assets: { type: 'number', minimum: 0 }, other_properties: { type: 'number', minimum: 0 }, income_verification: { type: 'boolean' } } }, additional_costs: { type: 'object', properties: { appraisal_fee: { type: 'number', minimum: 0 }, inspection_fees: { type: 'number', minimum: 0 }, title_insurance: { type: 'number', minimum: 0 }, attorney_fees: { type: 'number', minimum: 0 }, recording_fees: { type: 'number', minimum: 0 }, other_closing_costs: { type: 'number', minimum: 0 } } }, analysis_options: { type: 'object', properties: { compare_conventional: { type: 'boolean' }, stress_testing: { type: 'boolean' }, roi_analysis: { type: 'boolean' }, prepayment_analysis: { type: 'boolean' } } } }, required: ['loan_details'] }; } calculate(params) { const { loan_details, project_details = {}, borrower_profile = {}, additional_costs = {}, analysis_options = {} } = params; // Calculate basic loan metrics const loan_metrics = this.calculateLoanMetrics(loan_details, additional_costs); // Analyze project viability const project_analysis = project_details.project_type ? this.analyzeProject(project_details, loan_details, loan_metrics) : null; // Calculate total cost of capital const cost_analysis = this.analyzeCostOfCapital(loan_details, loan_metrics, project_details); // Generate risk assessment const risk_assessment = this.assessRisks(loan_details, project_details, borrower_profile); // Compare with conventional financing if requested const conventional_comparison = analysis_options.compare_conventional ? this.compareConventionalFinancing(loan_details, project_details) : null; // Stress testing scenarios const stress_testing = analysis_options.stress_testing ? this.performStressTesting(loan_details, project_details) : null; // ROI analysis for project const roi_analysis = analysis_options.roi_analysis && project_details.project_type ? this.calculateROIAnalysis(loan_details, project_details, loan_metrics) : null; // Prepayment analysis const prepayment_analysis = analysis_options.prepayment_analysis ? this.analyzePrepaymentOptions(loan_details, loan_metrics) : null; // Generate recommendations const recommendations = this.generateRecommendations( loan_metrics, project_analysis, risk_assessment, borrower_profile ); return { loan_summary: { loan_amount: loan_details.loan_amount, property_value: loan_details.property_value, ltv_ratio: (loan_details.loan_amount / loan_details.property_value) * 100, interest_rate: loan_details.interest_rate, loan_term_months: loan_details.loan_term_months, payment_type: loan_details.payment_type, points: loan_details.points || 0, origination_fee: loan_details.origination_fee || 0 }, loan_metrics, project_analysis, cost_analysis, risk_assessment, conventional_comparison, stress_testing, roi_analysis, prepayment_analysis, recommendations }; } calculateLoanMetrics(loan_details, additional_costs = {}) { const { loan_amount, interest_rate, loan_term_months, points = 0, origination_fee = 0, payment_type } = loan_details; const monthly_rate = interest_rate / 100 / 12; // Calculate upfront costs const points_cost = loan_amount * (points / 100); const origination_cost = loan_amount * (origination_fee / 100); const closing_costs = Object.values(additional_costs).reduce((sum, cost) => sum + (cost || 0), 0); const total_upfront_costs = points_cost + origination_cost + closing_costs; let monthly_payment = 0; let total_interest = 0; let balloon_payment = 0; switch (payment_type) { case 'interest_only': monthly_payment = loan_amount * monthly_rate; total_interest = monthly_payment * loan_term_months; balloon_payment = loan_amount; break; case 'principal_and_interest': monthly_payment = loan_amount * (monthly_rate * Math.pow(1 + monthly_rate, loan_term_months)) / (Math.pow(1 + monthly_rate, loan_term_months) - 1); total_interest = (monthly_payment * loan_term_months) - loan_amount; break; case 'balloon': // Interest-only with balloon at end monthly_payment = loan_amount * monthly_rate; total_interest = monthly_payment * loan_term_months; balloon_payment = loan_amount; break; } // Calculate effective interest rate including costs const total_cost = total_interest + total_upfront_costs; const effective_rate = (total_cost / loan_amount / (loan_term_months / 12)) * 100; // Net loan proceeds const net_proceeds = loan_amount - total_upfront_costs; return { monthly_payment: Math.round(monthly_payment), total_interest: Math.round(total_interest), balloon_payment: Math.round(balloon_payment), points_cost: Math.round(points_cost), origination_cost: Math.round(origination_cost), closing_costs: Math.round(closing_costs), total_upfront_costs: Math.round(total_upfront_costs), net_proceeds: Math.round(net_proceeds), effective_interest_rate: Math.round(effective_rate * 100) / 100, total_cost_of_loan: Math.round(total_cost), payment_schedule: this.generatePaymentSchedule(loan_details, monthly_payment) }; } generatePaymentSchedule(loan_details, monthly_payment) { const { loan_amount, interest_rate, loan_term_months, payment_type } = loan_details; const monthly_rate = interest_rate / 100 / 12; let remaining_balance = loan_amount; const schedule = []; for (let month = 1; month <= Math.min(loan_term_months, 12); month++) { // Show first year const interest_payment = remaining_balance * monthly_rate; let principal_payment = 0; if (payment_type === 'principal_and_interest') { principal_payment = monthly_payment - interest_payment; remaining_balance -= principal_payment; } schedule.push({ month, payment: Math.round(monthly_payment), principal: Math.round(principal_payment), interest: Math.round(interest_payment), balance: Math.round(remaining_balance) }); } return schedule; } analyzeProject(project_details, loan_details, loan_metrics) { const { project_type, purchase_price = 0, rehab_budget = 0, after_repair_value = 0, project_timeline_months = loan_details.loan_term_months, construction_draws = false } = project_details; const total_project_cost = purchase_price + rehab_budget; const loan_to_cost = total_project_cost > 0 ? (loan_details.loan_amount / total_project_cost) * 100 : 0; const loan_to_arv = after_repair_value > 0 ? (loan_details.loan_amount / after_repair_value) * 100 : 0; // Calculate project metrics const gross_profit = after_repair_value - total_project_cost - loan_metrics.total_cost_of_loan; const profit_margin = after_repair_value > 0 ? (gross_profit / after_repair_value) * 100 : 0; const roi = total_project_cost > 0 ? (gross_profit / total_project_cost) * 100 : 0; const annualized_roi = project_timeline_months > 0 ? (roi / project_timeline_months) * 12 : 0; // Project viability assessment const viability_score = this.calculateViabilityScore( profit_margin, loan_to_arv, project_timeline_months, project_type ); return { project_type, total_project_cost, loan_to_cost: Math.round(loan_to_cost * 100) / 100, loan_to_arv: Math.round(loan_to_arv * 100) / 100, gross_profit: Math.round(gross_profit), profit_margin: Math.round(profit_margin * 100) / 100, roi: Math.round(roi * 100) / 100, annualized_roi: Math.round(annualized_roi * 100) / 100, project_timeline_months, construction_draws, viability_score, viability_rating: this.rateViability(viability_score), project_recommendations: this.generateProjectRecommendations( project_type, profit_margin, loan_to_arv, project_timeline_months ) }; } calculateViabilityScore(profit_margin, loan_to_arv, timeline, project_type) { let score = 0; // Profit margin scoring (40 points max) if (profit_margin >= 25) score += 40; else if (profit_margin >= 20) score += 35; else if (profit_margin >= 15) score += 25; else if (profit_margin >= 10) score += 15; else if (profit_margin >= 5) score += 5; // LTV scoring (30 points max) if (loan_to_arv <= 65) score += 30; else if (loan_to_arv <= 70) score += 25; else if (loan_to_arv <= 75) score += 20; else if (loan_to_arv <= 80) score += 10; // Timeline scoring (20 points max) if (timeline <= 6) score += 20; else if (timeline <= 9) score += 15; else if (timeline <= 12) score += 10; else if (timeline <= 18) score += 5; // Project type scoring (10 points max) const type_scores = { 'light_rehab': 10, 'fix_flip': 8, 'buy_hold': 6, 'heavy_rehab': 5, 'ground_up_construction': 3, 'refinance': 9 }; score += type_scores[project_type] || 5; return Math.min(100, score); } rateViability(score) { if (score >= 80) return 'Excellent'; if (score >= 65) return 'Very Good'; if (score >= 50) return 'Good'; if (score >= 35) return 'Fair'; return 'Poor'; } generateProjectRecommendations(project_type, profit_margin, loan_to_arv, timeline) { const recommendations = []; if (profit_margin < 15) { recommendations.push('Consider increasing sale price or reducing costs - profit margin below industry standard'); } if (loan_to_arv > 75) { recommendations.push('High loan-to-ARV ratio increases risk - consider larger down payment'); } if (timeline > 12) { recommendations.push('Extended timeline increases carrying costs - consider shorter-term strategies'); } if (project_type === 'ground_up_construction') { recommendations.push('Construction projects require experienced contractors and detailed timeline management'); } if (project_type === 'heavy_rehab') { recommendations.push('Heavy rehab projects need comprehensive inspections and cost contingencies'); } return recommendations; } analyzeCostOfCapital(loan_details, loan_metrics, project_details = {}) { const { loan_term_months, interest_rate } = loan_details; const { project_timeline_months = loan_term_months } = project_details; // Calculate various cost metrics const effective_rate = loan_metrics.effective_interest_rate; const monthly_carrying_cost = loan_metrics.monthly_payment; const total_carrying_cost = monthly_carrying_cost * project_timeline_months; // Comparison with other financing types const conventional_rate = 7.0; // Assumed conventional rate const savings_vs_conventional = (conventional_rate - interest_rate) * (loan_details.loan_amount / 100) * (project_timeline_months / 12); return { effective_annual_rate: effective_rate, monthly_carrying_cost, total_carrying_cost: Math.round(total_carrying_cost), cost_per_month_per_100k: Math.round((monthly_carrying_cost / loan_details.loan_amount) * 100000), upfront_cost_percentage: (loan_metrics.total_upfront_costs / loan_details.loan_amount) * 100, savings_vs_conventional: Math.round(savings_vs_conventional), cost_analysis: this.analyzeCostEffectiveness(effective_rate, project_timeline_months) }; } analyzeCostEffectiveness(effective_rate, timeline_months) { const analysis = []; if (effective_rate > 15) { analysis.push('High cost of capital - ensure project returns justify expense'); } else if (effective_rate > 12) { analysis.push('Moderate cost of capital - acceptable for quick turnaround projects'); } else { analysis.push('Competitive cost of capital for hard money financing'); } if (timeline_months <= 6) { analysis.push('Short timeline helps minimize total interest cost'); } else if (timeline_months > 12) { analysis.push('Extended timeline increases total cost - consider conventional refinancing'); } return analysis; } assessRisks(loan_details, project_details = {}, borrower_profile = {}) { const risks = []; let total_risk_score = 0; // Interest rate risk if (loan_details.interest_rate > 14) { risks.push({ category: 'Cost Risk', risk: 'High Interest Rate', level: 'High', description: `${loan_details.interest_rate}% rate creates significant carrying costs`, mitigation: 'Focus on quick execution to minimize total interest paid' }); total_risk_score += 25; } // LTV risk const ltv = (loan_details.loan_amount / loan_details.property_value) * 100; if (ltv > 80) { risks.push({ category: 'Market Risk', risk: 'High Loan-to-Value', level: ltv > 90 ? 'High' : 'Medium', description: `${ltv.toFixed(1)}% LTV provides limited equity cushion`, mitigation: 'Ensure conservative property valuation and exit strategy' }); total_risk_score += ltv > 90 ? 20 : 15; } // Project risk if (project_details.project_type === 'ground_up_construction') { risks.push({ category: 'Project Risk', risk: 'Construction Complexity', level: 'High', description: 'Ground-up construction has highest risk of delays and cost overruns', mitigation: 'Use experienced contractors, detailed contracts, and adequate contingencies' }); total_risk_score += 30; } else if (project_details.project_type === 'heavy_rehab') { risks.push({ category: 'Project Risk', risk: 'Rehab Complexity', level: 'Medium', description: 'Heavy rehab projects often encounter unexpected issues', mitigation: 'Conduct thorough inspections and maintain 20% cost contingency' }); total_risk_score += 20; } // Timeline risk if (project_details.project_timeline_months > loan_details.loan_term_months) { risks.push({ category: 'Timeline Risk', risk: 'Project Timeline Exceeds Loan Term', level: 'High', description: 'Project timeline longer than loan term creates refinancing risk', mitigation: 'Negotiate loan extension option or ensure refinancing backup plan' }); total_risk_score += 25; } // Experience risk if (borrower_profile.experience_level === 'beginner') { risks.push({ category: 'Borrower Risk', risk: 'Limited Experience', level: 'Medium', description: 'Inexperienced borrowers face higher execution risk', mitigation: 'Partner with experienced contractors and consider mentorship' }); total_risk_score += 15; } return { identified_risks: risks, risk_score: Math.min(100, total_risk_score), overall_risk_level: total_risk_score > 60 ? 'High' : total_risk_score > 35 ? 'Medium' : 'Low', risk_mitigation_strategies: this.generateRiskMitigation(risks) }; } generateRiskMitigation(risks) { const strategies = [ 'Maintain detailed project timeline with milestone tracking', 'Secure backup contractors and suppliers', 'Establish credit line for cost overruns', 'Conduct comprehensive property inspections', 'Obtain appropriate insurance coverage', 'Plan exit strategy before project start', 'Monitor local market conditions regularly' ]; return strategies; } compareConventionalFinancing(loan_details, project_details = {}) { const conventional_rate = 7.0; // Typical investment property rate const conventional_ltv = 75; // Typical max LTV for investment const conventional_term = 360; // 30 years const conventional_loan_amount = loan_details.property_value * 0.75; const conventional_monthly = conventional_loan_amount * (conventional_rate / 100 / 12 * Math.pow(1 + conventional_rate / 100 / 12, conventional_term)) / (Math.pow(1 + conventional_rate / 100 / 12, conventional_term) - 1); const hard_money_total_cost = loan_details.loan_amount * loan_details.interest_rate / 100 * (loan_details.loan_term_months / 12); const conventional_total_cost = conventional_monthly * conventional_term - conventional_loan_amount; return { comparison_type: 'Hard Money vs Conventional', hard_money: { loan_amount: loan_details.loan_amount, interest_rate: loan_details.interest_rate, monthly_payment: Math.round(loan_details.loan_amount * loan_details.interest_rate / 100 / 12), total_cost: Math.round(hard_money_total_cost), approval_time: '3-7 days', requirements: 'Asset-based, minimal documentation' }, conventional: { loan_amount: Math.round(conventional_loan_amount), interest_rate: conventional_rate, monthly_payment: Math.round(conventional_monthly), total_cost: Math.round(conventional_total_cost), approval_time: '30-45 days', requirements: 'Income verification, credit score, seasoning' }, hard_money_advantages: [ 'Fast approval and funding', 'Asset-based qualification', 'Flexible terms', 'Allows renovation financing' ], conventional_advantages: [ 'Lower interest rate', 'Longer term available', 'Lower total cost for long-term holds', 'Predictable payments' ], recommendation: this.getFinancingRecommendation(loan_details, project_details) }; } getFinancingRecommendation(loan_details, project_details) { const timeline = project_details.project_timeline_months || loan_details.loan_term_months; if (timeline <= 12 && project_details.project_type !== 'buy_hold') { return 'Hard money recommended for short-term projects with quick exit strategy'; } else if (timeline > 24 || project_details.project_type === 'buy_hold') { return 'Consider conventional financing for long-term holds after project completion'; } else { return 'Hard money for acquisition and renovation, then refinance to conventional'; } } performStressTesting(loan_details, project_details = {}) { const base_scenario = { name: 'Base Case', timeline: project_details.project_timeline_months || loan_details.loan_term_months, costs: project_details.rehab_budget || 0, arv: project_details.after_repair_value || loan_details.property_value }; const scenarios = [base_scenario]; // Timeline delay scenario scenarios.push({ name: 'Timeline Delay (50%)', timeline: base_scenario.timeline * 1.5, costs: base_scenario.costs, arv: base_scenario.arv, additional_cost: loan_details.loan_amount * loan_details.interest_rate / 100 * 0.5 * (base_scenario.timeline / 12) }); // Cost overrun scenario scenarios.push({ name: 'Cost Overrun (25%)', timeline: base_scenario.timeline, costs: base_scenario.costs * 1.25, arv: base_scenario.arv, additional_cost: base_scenario.costs * 0.25 }); // Market decline scenario scenarios.push({ name: 'Market Decline (15%)', timeline: base_scenario.timeline, costs: base_scenario.costs, arv: base_scenario.arv * 0.85, value_loss: base_scenario.arv * 0.15 }); // Calculate impact for each scenario scenarios.forEach(scenario => { const total_additional_cost = (scenario.additional_cost || 0) + (scenario.value_loss || 0); scenario.impact_on_profit = -total_additional_cost; scenario.severity = total_additional_cost > 50000 ? 'High' : total_additional_cost > 25000 ? 'Medium' : 'Low'; }); return { scenarios, most_likely_risk: 'Timeline Delay', highest_impact_risk: scenarios.reduce((max, s) => Math.abs(s.impact_on_profit || 0) > Math.abs(max.impact_on_profit || 0) ? s : max ).name, stress_test_recommendations: [ 'Maintain 20-25% cost contingency', 'Plan for 25-50% timeline buffer', 'Secure backup exit strategies', 'Monitor market conditions closely' ] }; } calculateROIAnalysis(loan_details, project_details, loan_metrics) { const { purchase_price = 0, rehab_budget = 0, after_repair_value = 0, project_timeline_months = loan_details.loan_term_months } = project_details; const total_investment = purchase_price + rehab_budget + loan_metrics.total_cost_of_loan; const gross_profit = after_repair_value - total_investment; const roi = total_investment > 0 ? (gross_profit / total_investment) * 100 : 0; const annualized_roi = project_timeline_months > 0 ? (roi / project_timeline_months) * 12 : 0; // Calculate various return metrics const cash_invested = total_investment - loan_details.loan_amount; const cash_on_cash_return = cash_invested > 0 ? (gross_profit / cash_invested) * 100 : 0; const annualized_coc = project_timeline_months > 0 ? (cash_on_cash_return / project_timeline_months) * 12 : 0; return { total_investment: Math.round(total_investment), gross_profit: Math.round(gross_profit), roi: Math.round(roi * 100) / 100, annualized_roi: Math.round(annualized_roi * 100) / 100, cash_invested: Math.round(cash_invested), cash_on_cash_return: Math.round(cash_on_cash_return * 100) / 100, annualized_coc: Math.round(annualized_coc * 100) / 100, profit_per_month: Math.round(gross_profit / project_timeline_months), roi_rating: this.rateROI(annualized_roi), roi_benchmarks: { minimum_acceptable: 15, good: 25, excellent: 35 } }; } rateROI(annualized_roi) { if (annualized_roi >= 35) return 'Excellent'; if (annualized_roi >= 25) return 'Very Good'; if (annualized_roi >= 15) return 'Good'; if (annualized_roi >= 8) return 'Fair'; return 'Poor'; } analyzePrepaymentOptions(loan_details, loan_metrics) { const scenarios = []; const { loan_amount, interest_rate, loan_term_months } = loan_details; const monthly_rate = interest_rate / 100 / 12; // Calculate savings for different prepayment scenarios const prepayment_months = [3, 6, 9, 12].filter(m => m < loan_term_months); prepayment_months.forEach(months => { const interest_saved = loan_amount * monthly_rate * (loan_term_months - months); const total_paid = loan_metrics.monthly_payment * months + loan_amount; scenarios.push({ prepayment_month: months, interest_saved: Math.round(interest_saved), total_cost: Math.round(total_paid + loan_metrics.total_upfront_costs), savings_vs_full_term: Math.round(loan_metrics.total_cost_of_loan - (total_paid - loan_amount)) }); }); return { prepayment_scenarios: scenarios, optimal_prepayment: scenarios.length > 0 ? scenarios.reduce((best, current) => current.savings_vs_full_term > best.savings_vs_full_term ? current : best ) : null, prepayment_benefits: [ 'Reduces total interest cost', 'Frees up capital for next project', 'Eliminates refinancing risk', 'Simplifies exit process' ] }; } generateRecommendations(loan_metrics, project_analysis, risk_assessment, borrower_profile = {}) { const recommendations = []; // Overall loan assessment if (loan_metrics.effective_interest_rate > 16) { recommendations.push({ category: 'Cost Management', recommendation: '⚠️ High cost of capital requires quick execution', reasoning: `${loan_metrics.effective_interest_rate}% effective rate necessitates rapid project completion`, priority: 'High' }); } else if (loan_metrics.effective_interest_rate < 12) { recommendations.push({ category: 'Loan Terms', recommendation: '✅ Competitive hard money terms', reasoning: 'Effective rate below 12% is favorable for hard money financing', priority: 'Medium' }); } // Project analysis recommendations if (project_analysis && project_analysis.viability_score < 50) { recommendations.push({ category: 'Project Viability', recommendation: '❌ Reconsider project parameters', reasoning: 'Low viability score suggests poor risk-adjusted returns', priority: 'High' }); } else if (project_analysis && project_analysis.viability_score > 75) { recommendations.push({ category: 'Project Execution', recommendation: '✅ Strong project fundamentals', reasoning: 'High viability score indicates good potential returns', priority: 'Medium' }); } // Risk-based recommendations if (risk_assessment.overall_risk_level === 'High') { recommendations.push({ category: 'Risk Management', recommendation: 'Implement comprehensive risk mitigation', reasoning: 'High risk score requires additional protections and contingencies', priority: 'High' }); } // Experience-based recommendations if (borrower_profile.experience_level === 'beginner') { recommendations.push({ category: 'Execution Support', recommendation: 'Consider experienced partners or mentorship', reasoning: 'First-time hard money borrowers benefit from experienced guidance', priority: 'Medium' }); } // Timeline recommendations if (project_analysis && project_analysis.project_timeline_months > 12) { recommendations.push({ category: 'Timeline Management', recommendation: 'Plan conventional refinancing option', reasoning: 'Extended timeline makes conventional financing more cost-effective', priority: 'Medium' }); } return { recommendations, overall_assessment: this.getOverallAssessment(loan_metrics, project_analysis, risk_assessment), key_success_factors: [ 'Accurate project cost estimation', 'Realistic timeline planning', 'Strong contractor relationships', 'Clear exit strategy', 'Adequate cash reserves' ] }; } getOverallAssessment(loan_metrics, project_analysis, risk_assessment) { let score = 0; let factors = 0; // Cost assessment if (loan_metrics.effective_interest_rate <= 12) { score += 30; } else if (loan_metrics.effective_interest_rate <= 15) { score += 20; } else { score += 5; } factors++; // Project viability if (project_analysis) { score += project_analysis.viability_score * 0.4; factors++; } // Risk assessment score += Math.max(0, 100 - risk_assessment.risk_score) * 0.3; factors++; const final_score = score / factors; if (final_score >= 75) return 'Highly Recommended'; if (final_score >= 60) return 'Recommended'; if (final_score >= 45) return 'Proceed with Caution'; return 'Not Recommended'; } }