$3.09M Portfolio Refinance to Replace Hard Money and Unlock Liquidity

Refinancing One Property Turned Into a Portfolio Strategy

The borrower originally came to Brick City Capital seeking a refinance on one property coming out of a fix-and-flip loan. However, the refinance required a significant amount of cash to close.

Rather than forcing the borrower to inject new capital, the team stepped back and evaluated the entire portfolio. By packaging several additional properties into the refinance, the structure allowed the borrower to:

The result was a structure that improved the borrower’s liquidity instead of draining it.

Multiple Properties, Mixed Assets, and Zoning Complications

While the portfolio strategy created financial flexibility, it also introduced complexity. The six properties were not identical assets. The portfolio included a mix of single-family rentals, multifamily properties, and recently renovated units without a long operating history.

One property in particular created underwriting challenges. A multifamily property had a unit conversion that required verification through city zoning records, forcing the team to dig through municipal documentation to confirm the legality of the configuration. Without confirming the zoning details, the property could have become ineligible within the lending structure.

At the same time, several properties had limited lease documentation due to recent renovations. Some units were vacant, while others had leases that exceeded standard market rent assumptions.

To move the portfolio forward, the team leveraged lending programs that allowed underwriting based on the greater of market rent or actual rent in place. This flexibility helped the portfolio meet DSCR requirements across multiple assets.

At the same time, underwriting was conducted across all six properties simultaneously, allowing the team to move toward a single coordinated closing rather than six separate transactions. That approach dramatically shortened the overall timeline.

Portfolio Closed Faster Than Expected

Despite the mixed asset types, zoning verification, and DSCR challenges, the portfolio moved efficiently through underwriting. The loan ultimately closed slightly better than the original term sheet.

During the process, the borrower completed minor credit improvements and verified actual rental income across the properties. These adjustments helped strengthen the DSCR profile and resulted in lower final interest rates than originally quoted.

Meet the Closer

“This deal came down to certainty of execution. With six different assets and multiple underwriting variables, success depended on stepping back, looking at the entire portfolio, and structuring the financing around the bigger picture.”

JJ Phelan

Account Executive

Work with JJ

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