The Challenge
The borrower came to Encore Finance looking to refinance a portfolio of 12 three-bedroom, two-bath townhomes in the Chicago area. The townhomes are part of a contiguous property and generate average rents of approximately $2,300 per month.
The borrower needed a financing solution that could accommodate the entire portfolio while supporting the cash flow of the stabilized rental properties.
The Solution
Encore Finance structured a $2,581,800 loan across all 12 townhomes at 65% LTV, with a 1.30x DSCR, and 8.5% debt yield. The loan provided five years of interest-only financing and closed within six weeks.
By financing the properties together, Encore was able to provide a single solution tailored to the borrower’s existing portfolio and investment strategy.
The Outcome
The completed refinance provided the borrower with an interest-only structure designed to support cash flow across the stabilized rental portfolio.
Encore Finance works with experienced real estate investors to structure financing around the needs of each transaction, whether refinancing an existing portfolio, acquiring new properties, or positioning assets for their next stage.
Financing a Portfolio of Rental Properties?
Whether you’re acquiring new assets or refinancing an existing portfolio, Encore Finance can help you evaluate the right financing structure for your investment strategy.
Contact us today at info@encorefinance.com to discuss your next opportunity.
