Deal Review: $4.4M 10-Pack DSCR Loan

The challenge

A 1031 Deadline + Complex Ownership

The borrower was acquiring a ten-property single-family rental portfolio in Castle Rock, CO, but the transaction was tied to a seller executing a 1031 exchange with a hard deadline.

‍At the same time:

The borrowing entity was a large LLC with 16 distinct members.
Equity was sourced from multiple investors, lacking traditional seasoning.
The seller's 1031 exchange required closing in exactly 30 days.

Most lenders declined immediately. Either due to ownership limits or seasoning requirements that would have pushed the closing past the exchange deadline.

Roadblock

With 16 members, the equity ownership was heavily diluted. No single individual owned more than 10% of the LLC. Traditional banks demanded a Personal Guarantee (PG) from any member owning >20%, effectively freezing the deal.

Standard bank assumption:

One or two key principals with 20%+ ownership
Full personal recourse from qualifying guarantors
Individual liquidity sufficient to support the loan

Actual deal structure:

16-member LLC with highly diluted ownership
Largest member owned 9.5%
No individual could satisfy recourse or liquidity requirements

How We Executed

We utilized a specialized DSCR program that allows unlimited entity members without seasoning requirements. By underwriting the asset's cash flow rather than the individuals, we bypassed the need for entity restructuring.

Complex Entity Approval

Cleared 15+ members without seasoning or restructuring.

Parallel Processing

Coordinated title/insurance for 10 properties simultaneously.

1031 Deadline Met

Funded in 30 days.

the portfolio

Ten newly renovated single-family homes in Castle Rock, CO. All units were processed simultaneously to ensure the entire portfolio closed as one transaction.

transaction summary

Location

Castle Rock, CO

Loan Type

DSCR Portfolio Purchase

Loan Amount

$4.4 Million

Term

30-Year Fixed

Authorization

Interest Only

Prepayment

None - 0 Months

Equity Ownership

15+ Individuals

Meet the loan officer

"There wasn’t any room for trial-and-error. We had to land on the right structure immediately to beat the 1031 clock."

Jack Bergen

VP, Originations

Work with Jack

Explore more deals we've closed

$1.3M 7-Day STR Refinance

With no rental history and weak projected income, we rebuilt the income model and closed a $1.3M DSCR refinance in just 7 days.

$4.4M 10-Pack SFR Acquisition

The Goal: Secure a $4.4M portfolio loan for a complex 16-member LLC before a 1031 exchange deadline expires

Get Quote

assets

Single-Family Residential

Single-Family Porfolios

Short-Term Rentals

Non-Warrantable Condos

Multi-Family

Mixed-Use

work with us

Brokers

Borrowers

company

About Us

Terms & Conditions

Our HeadQuarters

50 Park Place, Suite 301 Newark, NJ 07102

Contact

(973) 705-7725

sales@brkcty.com

* Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet. Lorem ipsum dolor sit amet.

Disclaimers:

Terms & Conditions

$4.4M 10-Pack SFR Acquisition

A 1031 Deadline + Complex Ownership

Standard bank assumption:

Actual deal structure:

Complex Entity Approval

Parallel Processing

1031 Deadline Met

Meet the loan officer

Explore more deals we've closed

$1.3M 7-Day STR Refinance

$4.4M 10-Pack SFR Acquisition

Have a portfolio deal with moving parts?