Rental Portfolio Loan | Montoursville, PA

The Opportunity

An investor who owned eight rental properties in the Williamsport, Pennsylvania, area wanted to grow her portfolio. She determined that the best way to accomplish her goal of expanding to 12-15 properties was by acquiring additional homes to flip using the BRRRR strategy.

To execute this plan, she needed a cash-out refinance of her portfolio. And because she had not previously completed a flip, she needed to find a lender who understood the depth of her investment experience. Her search for a true financing partner led her to pick up the phone when a Lima One loan officer called.

The Solution

Lima One provided cash-out refinancing for the eight rental properties in this investor’s portfolio at 72.4% loan-to-value leverage. This $1.38 million loan empowered the investor to accomplish step one of her scaling strategy.

The true differentiator in the partnership with Lima One came on step two. The investor used the cash out to purchase a fix-and-flip property with a $243,500 loan. Lima One even worked with the title company to hold the cash-out funds from the DSCR loans in escrow so the investor did not have to bring additional funds to the closing table, streamlining the process.

The best part is that Lima One credited the refinances the eight rentals toward the investor’s experience, which unlocked significantly better interest rates and lower fees on her first flip loan. And when she completes the flip, she can refinance it into a Lima One DSCR loan while using the pre-flip appraised after-repair value, eliminating uncertainty in the BRRRR strategy.

The investor was thrilled to with her experience, saying that “the team of people who helped us were professional, knowledgeable and keep us abreast of every step. Never have we had such service!”