Larger loans for portfolio purchases

Keystone now offers loans up to $1 million. This increase gives real estate investor clients more flexibility to seize larger opportunities, especially when deals come up that require more funding. One great example is a portfolio loan we recently funded:

A seasoned real estate investor had an opportunity to buy 3 duplexes on the same street in Windsor, Nova Scotia, at a discounted price of $850K (compared to their appraised value of just over $1M). The same client also had a 2-unit rental property build in progress just outside Halifax.

Despite having average credit due to high utilization, the client had a perfect repayment history and the cash flow from their business to handle payments. We were able to provide $1M in financing, fully funding the purchase price, thanks to several key factors:

• The appraised value exceeded the purchase price, which we gave some value to.

• We had additional security on the rental property and the client’s personal residence.

• A blended loan-to-value (LTV) of 68%.

This type of portfolio loan is a perfect example of how larger funding can help accelerate the growth of your real estate portfolio. The exit strategy is solid, with plans to refinance after completing cosmetic upgrades.

When you’ve got a client looking to take their real estate investments to the next level, Keystone Capital is here to help!