From Flippers to Leaders
How BRK CTY Became the Nation’s Premier DSCR Lender
by Eric Panecki
When the co-founders started BRK CTY, we did not intend to become the leading DSCR (Debt Service Coverage Ratio) lender in the country. Our roots were humble, born from our experience as New Jersey real estate investors flipping properties. This hands-on knowledge gave us a deep understanding of the challenges investors face, from navigating financing options to closing deals quickly. We saw the inefficiencies and pain points firsthand — and we knew we could do better.
Our journey from investors to DSCR specialists was not without its challenges, but it is a story of resilience, focus, and innovation. Today, we are proud to say we help brokers and their clients achieve their real estate goals, offering a tailored, expert-driven approach to lending.
Here is how we got here, the products we offer, and some best practices for brokers looking to thrive in this competitive space.
A Strong Foundation in Real Estate
BRK CTY’s story began like many others in real estate: with a few properties, a vision, and a lot of hard work. We built our expertise buying/holding/flipping houses, learning what it takes to maximize returns and overcome the unexpected challenges that every investor faces.
At first, our lending business was broad. We offered bridge loans, ground-up construction financing, and DSCR loans to meet the diverse needs of our clients. While this approach allowed us to serve a wide range of borrowers, we soon realized it came at a cost. We were not able to focus on doing one thing exceptionally well.
That is when we made the bold decision to pivot. We dropped bridge and construction loans to focus exclusively on DSCR loans. It was a tough pill to swallow for our sales team, who initially lost 75-80% of their business. But we believed that by concentrating on one product, we could not only survive but thrive.
Why DSCR Loans?
DSCR loans are the backbone of real estate investing, especially for those looking to build rental portfolios. Unlike traditional loans that rely heavily on personal income and credit scores, DSCR loans evaluate a property’s cash flow in order to set the basis of the loan value. This makes them ideal for investors who prioritize passive income and scalability.
By focusing solely on DSCR loans, we have been able to fine-tune our process, develop expertise, and create a product that truly meets the needs of investors. Our loans offer competitive rates and terms, including 30-year fixed and adjustable options, high LTV ratios for maximum leverage, and simplified underwriting processes for faster closings.
Our decision to specialize was transformative. We had a goal of having the widest box available for our underwriting process in order to meet our brokers’ needs. We partnered with multiple capital providers to make that happen. We have grown into a trusted partner for brokers and their clients, offering unmatched speed, transparency, and support.
From Being White-Labeled to Building Our Own Infrastructure
In our early days, we operated behind the scenes, white-labeling our lending services for larger firms. While this gave us valuable exposure and volume, it also came with limitations. We didn’t have control over the borrower experience or the ability to innovate on our terms.
We were doing five loans a month…
The turning point came when we saw the inefficiencies with this model. The lack of flexibility and the disconnect between our services and the end customer’s needs were holding us back. We realized that to grow, we needed to build our own infrastructure.
We were doing 10 loans a month…
This was no small feat. Developing the systems, teams, and processes to handle everything in-house was a significant investment. But it paid off. Today, we manage everything in-house from underwriting to servicing, ensuring a seamless experience for brokers and borrowers alike.
We were doing 20 loans a month…
Ironically, some of the same firms that used to white-label us now rely on our infrastructure to power their operations. It is a testament to the strength of what we have built.
We are now doing 100 loans a month, $50M in transactions, and are still growing.
Partnering with Brokers for Mutual Success
Brokers are at the heart of what we do. We view them not just as intermediaries but as true partners in delivering value to investors. Here is how we support brokers to ensure their success:
Transparent Compensation // Brokers can earn up to 5% points and yield spread on deals. We pride ourselves on having no hidden fees. Our structure ensures that brokers are fairly compensated while maintaining competitive terms for borrowers.
Dedicated Support // Each broker is assigned a dedicated account manager, providing a consistent point of contact to navigate deals efficiently. From initial inquiries to closing, our team is here to support every step.
Technology-Driven Solutions // We have invested in tools and platforms to make the lending process as seamless as possible. Our pricing engine, application portals, and tracking systems provide brokers with real-time updates and transparency.
Education and Resources // We regularly host webinars, provide co-branded marketing materials, and share best practices to help brokers stay ahead of industry trends.
Expanded Buy Box // We sell to a broad network of loan buyers, allowing us flexibility that can be an advantage to our customers. We’re able to offer low seasoning periods, low credit score, Sub-1.0 LTV loan amount, etc. Our goal is to be the one stop shop for all DSCR products.
Best Practices for Brokers
In our experience working with brokers nationwide, we have identified a few key practices that separate top performers from the rest of the herd:
Know Your Products // Understanding the nuances of DSCR loans is crucial. This includes knowing what makes a deal work, the target borrower profile, and how to position the product to maximize value.
Focus on Thorough Submissions // The more information provided upfront, the faster and smoother the underwriting process. This minimizes back-and-forth and ensures quicker closings.
Value Relationships // Brokers who build strong, long-term relationships with lenders often get better rates, faster turn times, and preferential treatment for rush deals. It is a two-way street that pays dividends.
Leverage Technology // Use the tools we provide to streamline your workflow. From pricing calculators to document portals, technology can save you and your clients valuable time.
Stay Educated // The market is constantly evolving. Whether it is attending industry events or joining our training sessions, staying informed is key to maintaining a competitive edge.
Brick by Brick: Our Growth Story
Our growth has been methodical — brick by brick. From flipping our first properties to becoming the leading DSCR lender in New Jersey and beyond, we have built our success on a foundation of focus, innovation, and partnership.
Today, our sales team is thriving. While they initially resisted the shift to DSCR-only lending, they have come to see the benefits of specialization.
We are now expanding into wholesale lending, bringing our products to an even broader audience.
Looking ahead, we are excited to continue growing our broker network, refining our offerings, and helping real estate investors achieve their goals. Whether you are a broker looking for a trusted partner or an investor seeking tailored financing solutions, BRK CTY is here to help.
Conclusion
Our journey from flippers to DSCR specialists is one of focus and transformation. By concentrating on what we do best, we have built a business that delivers real value to brokers and their clients. We invite you to join us on this journey—because when we work together, we all succeed.
