About the Deal

The property is a tenant-occupied single-family rental in Oxford, Alabama, co-owned by four investors looking to fund improvements on another property they hold together and contribute toward a down payment on a new acquisition. On its face, the deal structure was straightforward: a DSCR cash-out refinance with a 75% LTV and a 1.17 DSCR on a long-term tenanted property. What made it operationally complex was the borrower count and geography. Two of the four co-borrowers were stationed at a military base in the United Kingdom.

What Made It Special

• Four-borrower structure. Four co-borrowers on a single deal means four sets of documents to sign, four sets of requirements to meet, and four parties who need to coordinate remotely. Managing that without slowing the transaction down takes organization on every side of the deal.
• International closing via US notary. The borrowers based in the UK signed closing documents at a US military base using a US notary — a legitimate closing method that requires advance coordination with the title company and genuine flexibility from all parties involved. Despite the time zone gap and the physical distance between borrowers, the subject property, and the closing team, the transaction closed on schedule.
• Portfolio funded by the proceeds. The cash-out proceeds gave the group the capital to begin improvements on another property they own and move on a new acquisition. Because DSCR loans qualify on rental income rather than personal income, the refinance did not affect any borrower’s personal DTI. For DSCR loans in Alabama, that structure is what allows co-borrower groups to scale without each deal tightening personal credit exposure.

The Result

The completed DSCR cash-out refinance closed on schedule with all four borrowers, including two signing from a military base in the UK.

• Loan Amount: $154,875 — 30YR Fixed Rate DSCR Loan
• Rate: 6.883%
• LTV: 75%
• DSCR: 1.17
• Loan Type: Cash-Out Refinance

More About Ridge Street Capital

Ridge Street Capital provides fix and flip loans, DSCR loans, and ground-up construction financing to real estate investors across 35 states. Our focus is exclusively on investment properties — which means every deal we evaluate gets the attention of a team that has seen the full range of what makes an investment work or fail.

If you want a lender who will tell you clearly whether a deal makes sense, and move fast when it does, contact us: