Case Study: Beyond the Appraisal. Turning a Valuation Setback into a Commercial Victory

October 28, 2025

When a six-unit multifamily property in Passaic, New Jersey, faced an unexpectedly low appraisal, the deal seemed on the verge of collapsing. But through persistence, technical expertise, and the right loan structure, Express Capital Financing’s Loan Officer Ben Shrara turned what looked like a dead end into a success story.

Real stories. Real challenges. Real solutions.

Every loan has a story behind the numbers.
In this section, The Elite Officer highlights real-world cases where Loan Officers turned complex challenges into successful closings. Each case shows how persistence, creativity, and financial strategy can make the difference between a stalled deal and a successful closing.

The Deal at a Glance

• Type: Six-unit multifamily
• Location: Passaic, New Jersey
• Loan Amount: $960,000
• Rate: 7.625 %
• LTV: 60 %
• Final DSCR: 1.758

The Challenge

The borrower sought to refinance and pull equity after upgrading the property and improving rents.
However, the initial appraisal and CDA (Comprehensive Development Analysis) came back well below expectations.

Key obstacles:

• Appraisal undervalued the property and ignored recent improvements.
• Garage unit income was excluded from Fair Market Rent (FMR) calculations.
• Extensive timelines for completing necessary Needs Condition Assessment (CNA), delaying the refinancing process.
• The DSCR fell short of lender requirements under a standard amortized loan.

With the deal numbers off, the refinance appeared to be dead in the water.

The Solution – The Turning Point

Loan Officer Ben Shrara decided to challenge the outcome instead of walking away.
He appealed both the initial appraisal and the CDA, advocating for a valuation that accurately reflected the property’s true market value and income after the recent improvements and rent increases.

At the same time, he restructured the financial model to support a stronger DSCR — shifting from a traditional 30-year amortization to a 10-year interest-only term.

This single change dramatically improved cash flow and repositioned the loan for approval.

The revised structure and corrected valuation not only revived the deal — they also allowed the borrower to unlock trapped equity and optimize cash flow without increasing risk.

The Outcome

The refinance closed successfully, proving how expertise and creative thinking can redefine a transaction’s trajectory.

By going beyond the appraisal, Ben demonstrated that data, flexibility, and determination remain the core tools of every effective Loan Officer.

Takeaway for Loan Officers

• Sometimes the biggest opportunities come right after the first “no.”
• Assertive Valuation Reassessment: Ensuring properties are appropriately valued is paramount.
• Adaptive Financing Solutions:Loan programs should be tailored to overcome specific financial challenges, demonstrating the necessity for adaptability in loan structuring
• Embrace Interest-Only Benefits:Interest-only loans can substantially mitigate immediate financial burdens, offering investors increased flexibility and strategic advantages.
• Understanding the story behind the numbers— and knowing how to rebuild it — can turn a challenge into your next success story.