First DSCR closed in January — took me 47 days start to finish, and the delay was almost entirely the LLC operating agreement. The borrower had formed the LLC online through LegalZoom and the OA was generic, no member-managed clarification. Lender's legal wanted specific language around authority-to-encumber. Took 10 days to get an amended OA drafted and signed by all three members. Adding this as a day-one intake check going forward.

Tracking the "first DSCR pitfall" theme across my team's last 15 closes — insurance binder is the #1 delay cause (matches Jon), followed by LLC docs (matches Helena above), followed by reserves seasoning. The pattern I've noticed: first-time DSCR borrowers think it's going to be faster than conventional because no W-2. In practice the property-level doc burden is heavier, just in different places. Setting that expectation at application reduces client frustration.

Solid write-up, and the "11 days late" story is painfully relatable. My first DSCR was a 3-unit in Albuquerque — I missed the original close by 14 days for almost the exact same reasons Jon mentioned. Insurance binder took forever because the carrier wanted a site inspection I didn't know was coming.

Thing I'd add for newer MLOs: the borrower's CPA. On my file the borrower's LLC had been formed two years prior but she'd never actually filed the partnership return (single-member disregarded entity, her CPA said it wasn't needed). The lender disagreed, wanted a K-1 or a Schedule E trail. We spent three days getting a letter from her CPA explaining the disregarded-entity treatment, and the underwriter still pushed back. Ended up needing a tax transcript, which takes 10-15 days to pull from the IRS and isn't something you can rush.

If your borrower's LLC is anything other than a clean pass-through with a filed return, stage the CPA letter + transcript request on day one. That's now on my intake checklist right next to the insurance binder trigger. First-deal lessons are expensive but they stick.