B
est Values Real Estate (BVRE) owns 165 residential units across the Denver metro, mainly in Aurora, with values ranging from $110 k to $900 k. Facing a receiver appointment threat and a $65 million lawsuit, the company filed for Chapter 11. BVRE’s debt totals $75 million, $70 million of which is owed to Genesis Capital of California. Between September 2021 and May 2022, Genesis extended 19 loans amounting to $89 million, each guaranteed by owner Boris Klein.

    Genesis alleges that BVRE has collected rent but failed to pay interest for four months. After warning that a receiver could be appointed on August 1 if interest was not paid, BVRE filed for bankruptcy instead. The company reports 2023 revenue of $6.4 million, 2024 of $5.7 million, and $2.2 million in the first seven months of 2025, valuing its 165 homes at $83.6 million.

    Court filings do not clarify why BVRE is insolvent, prompting Genesis to seek answers. Judge Michael Romero granted Genesis limited access to BVRE’s financials after concerns that collateral values were declining. Genesis notes that many properties are vacant—BVRE lists only 94 leases for 165 units—and questions how collected rents are being used, given the lack of recent principal or interest payments.

    In addition to bankruptcy proceedings, Genesis sued Klein on August 25. The lender claims Klein and his company received loan extensions following defaults in 2023, 2024, and January 2025, yet payments remain overdue. Klein has not responded to the lawsuit or interview requests.