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Lockbox Sweep Impact Calculator

Lockbox centralizes tenant rent control.

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Monthly sweepable

$33,000

Normal net cash flow

$33,000

Annualized sweep

$396,000

How the math works

Net cash = rent − reserves − debt − opex. Sweep = max 0, net cash.

$280k − $22k − $135k − $90k = $33k/mo sweepable. $396k/yr held by lender during trigger.

How to Use

  1. Enter monthly gross rent.
  2. Enter required reserves monthly.
  3. Enter debt service monthly.
  4. Enter opex monthly.
  5. Read sweepable amount.

Frequently Asked Questions

Hard vs soft?

Soft lockbox: tenant rent deposits to borrower account; lender sweeps on cure. Hard lockbox: tenant rent deposits to lender-controlled account; swept daily. Hard most restrictive; common in CMBS + on covenant violations.

Typical triggers?

Activation: DSCR < 1.20, LTV > 80%, material adverse event, maturity default. Deactivation: return to normal metrics for 2+ quarters. Daily sweep continues during active period.

Borrower impact?

Operating cash management harder (all draws through lender). Delayed reserve distributions. Administrative burden. Investor communication challenge. Psychological signal to market of distress.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.

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