10 Texas Properties with Negative Cash Flow Closed in 27 Days

THE SCENARIO

Restructure First. Refinance Second.

The borrower assembled a 10-property SFR portfolio just outside the TCU campus in Fort Worth, TX. At standard 12-month market rent of $4,000/unit, the portfolio was cash-flow negative on paper.

The plan: bring on a partner with direct experience in pad splits, mid-term rentals, and rent-by-the-room in the Fort Worth market. That partner would take majority ownership, serve as personal guarantor, and unlock $6,000+/unit through creative tenancy optimization.

The refinance wasn't the goal. Restructuring the portfolio's future was.

SFR portfolio near TCU campus, Fort Worth, TX

THE CHALLENGE

Two Problems Most Lenders Couldn't Solve

Traditional lenders ran the rent comps and stopped there. At $4,000/month market rent, the debt service coverage didn't close. Most never got far enough to understand why a sophisticated investor would want these properties.

The second layer: a new majority partner was entering as personal guarantor. The original owner stepping to a 40% passive position and not signing loan docs raises immediate flags, especially paired with non-standard tenancy projections.

Other Lenders

Market rent only — $4,000/unit

– Never modeled submarket income
– Partnership restructuring: declined
– Creative tenancy: outside framework

Resulting Income Model

0.98 Deal Declined

Brick City Capital

$6,000+/unit — submarket modeled

– TCU corridor validated at intake
– Membership restructure: led
– Mid-term rental model: confirmed

Resulting Income Model

1.05+ Deal Approved

Portfolio only works with the right income model?

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HOW WE EXECUTED

Speed & Submarket Intelligence

Before issuing terms, we modeled the deal the way the borrower intended to operate it, not the way a comp sheet suggested it should look. The key decision happened before a term sheet was ever issued.

REVIEW

The Oversight

Rather than accept the report at face value, the team challenged the initial appraisal that missed the rooftop patio values.

ACTION

Value Recaptured

The result was an additional $5,000–$10,000 in recognized value per unit across all 24 loans. On a portfolio of this size, that adjustment materially strengthened the overall structure and leverage profile.

CLOSED

The Final Terms

Borrower exited the balloon penalty-free, regained control, and can now refinance or sell units strategically; restoring optionality to their portfolio.

To date, it stands as the largest and most complex deal Brick City Capital has executed.

Why This Matters

In submarkets like TCU, income potential is real — but requires a lender willing to model the deal correctly. The difference between a declined file and a $4.2M close was understanding what $6,000/month actually looks like in Fort Worth.

30 days post-close: 50% of the portfolio leased, averaging $2,000 above the appraised market rent figure.

Meet the Loan Officer

"This deal came down to understanding membership interest across a partnership agreement and cash flow potential in specific submarkets. Most lenders stop at the market rent comp. We asked what the asset is actually capable of."

Jack Bergen

Work with Jack

Loan Officer

MORE DEALS LIKE THIS

Who Should Bring Us Deals Like This?

Investors restructuring portfolio ownership — particularly where an incoming partner takes majority stake and personal guarantor responsibility.
Borrowers in university submarkets (TCU, SEC, Big 12) — with mid-term rental or rent-by-room income models traditional lenders won't underwrite.
SFR portfolios cash-flow negative at 12-month market rent — but with documented upside through creative tenancy optimization.
Anyone told "the numbers don't work" — by a lender who stopped at the comp sheet.