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:
Pay off high-interest loans
Cover the closing costs on the initial refinance
Lower overall interest rates
Generate meaningful cash-out proceeds
The result was a structure that improved the borrower's liquidity instead of draining it.
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.
If you're trying to refinance one property but own multiple assets, there may be a better way to structure the deal. Brick City Capital regularly helps investors restructure portfolios to:
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.
Loan Amount
$3,090,500
Properties
6 Investment Properties
Structure
30-Year Fixed
LTV
74% Blended LTV
Timeline
15–20 Day Closing
"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."
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