Carry Guaranty Exposure Calculator

Carry guaranty obligates sponsor to cover operating shortfalls + debt service during stabilization. This calculator sizes total exposure over lease-up.

Monthly carry cost (DS + opex)

Monthly revenue (lease-up)

Lease-up months

Interest reserve balance

Sponsor carry exposure

$1,150,000

Monthly shortfall

$130,000

Total lease-up shortfall

$1,950,000

How the math works

Sponsor carry = (monthly shortfall × months) − interest reserve. Reserve covers first portion; sponsor covers remainder.

Size interest reserve appropriately at loan close. Under-sizing forces sponsor to step in — sometimes larger than expected if lease-up is slower than pro forma.

How to Use

Enter monthly carry cost (debt + opex).
Enter monthly revenue.
Enter lease-up months.
Enter interest reserve balance.
Read sponsor carry exposure.

Frequently Asked Questions

How is carry different from completion?

Completion = cost to build. Carry = cost to hold through stabilization. Both are common on construction loans; often both required.

Typical exposure?

Ground-up multifamily: $500k-$3M in carry guaranty depending on size. Office/retail with heavier TI/LC: can be larger. Institutional sponsors cap at 10% of loan; non-institutional often uncapped.

Interest reserves help?

Yes — loan usually includes interest reserve sized for expected carry months. If reserve exhausted before stabilization, sponsor's guaranty kicks in.

When does a lender negotiate vs foreclose?

Lenders calculate their net recovery from foreclosure (asset value minus legal, time, and sale costs) and compare to any workout proposal. If your offer nets the lender more than foreclosure, and you present it with clear sources of capital, most lenders will engage. Bring a credible sponsor, documented sources, and a timeline — vague asks get declined. Build the relationship before distress, not after.