Home / Case Study / Overcoming the Double Hurdle: Tight 1031 Timelines and Credit Issues

78.7
Loan to Value
$144,000
Total Loan

Ben
Shrara
Overcoming the Double Hurdle: Tight 1031 Timelines and Credit Issues
Case Study I DSCR
A seasoned real estate investor conquered a tight timeframe and credit score optimization to obtain an aggressive 80% financing for a critical property acquisition in Philadelphia, aligning with the stringent demands of a 1031 exchange

78.7%
Loan to Value
$144,000
Total Loan

Ben
Shrara
The Stats
$144,000
Total Loan Amount
7.25%
Interest Rate
78.7%
Loan To Value
1.731
DSCR
The Stats
$144,000
Total Loan
Amount
7.25%
Interest
Rate
78.7%
Loan To
Value
1.731
DSCR

Overview
Loan Program Used
DSCR
Closing Date
June 11th, 2024
Location
Philadelphia, PA
Property Type
Single Family
Goals
Obtain 80% financing for a property purchase, enhance their credit score, and meet a 1031 exchange deadline.
Home / Case Study / Overcoming the Double Hurdle: Tight 1031 Timelines and Credit Issues
3 min read
Project Summary
A repeat client, known for successfully securing over 10 DSCR loans, approached Express Capital Financing for 80% financing to purchase a property in Philadelphia.
The necessary funds were earmarked from cash-out proceeds of a refinance deal concluded by Express Capital Financing the prior month. With an urgent timeframe dictated by the seller's 1031 exchange deadline, the client also faced the critical task of enhancing their credit score to achieve the requisite financing leverage and favorable interest rates.

The Challenge
Our repeat client, a real estate investor with an extensive history of over 10 DSCR loans, sought significant leverage for a new property acquisition. The catch involved leveraging cash out from a recent refinance coupled with a tight deadline dictated by the seller's 1031 exchange requirement. Adding to the high-stakes scenario was the necessity for credit repair to improve terms and meet the aggressive 80% leverage target.
The Solution
Under the expert direction of Ben Shrara, Express Capital Financing crafted a customized and effective strategy to address the distinct needs of the borrower. Ben’s deep dive into the borrower's credit facilitated a clear pathway to not only improving the score but also structuring the deal to meet the client's aggressive financial requirements. The result was a seamless transaction that aligned with all predefined requirements and deadlines, leading to a successful property acquisition with the desired leverage and at a rate better than initially projected.
● Rapid Credit Rescore: Quickly improving the borrower's credit rating.
● Detailed Credit Analysis: Thoroughly understanding the borrower's financial standing
● Expedited Processing and Underwriting: Speeding up all necessary procedures to avoid delays.
Total Loan Amount: $144,000
Interest Rate: 7.25%
Loan To Value (LTV): 78.7%
DSCR: 1.731
Key Takeaways
Through the expert guidance of Ben Shrara and the team at Express Capital Financing, the borrower not only met the necessary conditions for the 1031 exchange but also secured an 80% leverage for the property purchase at a more favorable rate than initially expected.
- Expert Insight Leads to Optimal Outcomes: Ben Shrara’s ability to navigate and rectify credit-related obstacles showcases the value of having a seasoned loan officer who is not just a facilitator but a strategic advisor.
- Customization is Key: Each real estate deal carries unique challenges. Tailoring the financial approach to fit specific barriers, such as credit scores and tight deadlines, can make the difference in not only closing a deal but doing so in a way that exceeds expectations.
- Strategic Timing and Execution: The capacity to expedite processing and underwriting processes without sacrificing accuracy or diligence is crucial, especially in situations bound by stringent timelines like 1031 exchanges.
Secure Your Real Estate Goals with Proven DSCR Solutions
At Express Capital Financing, we understand that each investment opportunity is unique, and we're here to guide you through every step of the financial journey to ensure success. Whether you're looking to navigate the volatile market for aggressive terms or need expert advice on optimizing your investment strategy, our team of dedicated professionals is ready to assist. Don't let financing be the barrier to your next successful real estate investment. Contact us today or schedule a free consultation with Ben Shrara and explore how we can support your financing needs with no obligations.
Featured Topics
Overview
Loan Program Used
DSCR
Closing Date
June 11th, 2024
Location
Philadelphia, PA
Property Type
Single Family
Goals
Obtain 80% financing for a property purchase, enhance their credit score, and meet a 1031 exchange deadline.

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