Cross-Collateral Loans
Uses one or more existing properties as collateral for new financing.
Who Its Best For?
- Investors needing capital before a liquidity event or refinance.
- Clients looking to unlock equity across multiple properties for acquisitions.
- Investors with significant equity tied up in real estate who want to deploy it into new deals.
- Anyone bridging the gap between transactions or capital events.
What It Does
Cross-collateral loans provide short-term capital by leveraging existing equity across one or more properties. These loans are commonly used to acquire new properties quickly, cover operating capital, or seize opportunities before a sale or refinance is complete.
Cross-collateralization combines equity from multiple properties into one facility, often allowing larger loan amounts and higher leverage. This makes it possible to scale without selling existing assets.
Why It Matters
Real estate investing is often about timing. Waiting for a refinance or liquidity event can mean missing out on a profitable opportunity. Cross-collateral loans give you access to capital when you need it, not months later, so you can stay competitive and scale faster. The benefits include:
- Ability to act quickly on time-sensitive acquisitions.
- Use trapped equity to fund growth.
- Bridge the gap between sales, refinances, or liquidity events.
- Avoid selling properties prematurely just to access capital.
Key Benefits
- Loan amounts from $75,000 to $50 million.
- Close in as little as 5–10 days.
- Unlock equity across one or multiple properties.
- Flexible structures tied to your exit strategy.
- Nationwide availability.
Example Scenario
An investor owned three rental properties free and clear and was under contract to purchase an 18-unit multifamily asset. Rather than wait for a sale or refinance, we structured a cross-collateral loan secured by existing equity. This allowed the investor to close on the new acquisition within 10 days and exit the bridge loan once a pending sale closed 60 days later.
FAQ
What is a cross-collateral loan?
It uses equity from multiple properties as collateral for a single loan.
Can I use this type of loan for acquisitions?
Yes. Many investors use bridge financing to secure deals before selling or refinancing other assets.
How long are the terms?
Most range from 6 to 24 months.
Can I exit early?
Yes. There are typically no prepayment penalties, allowing you to exit after a refinance or sale.
What happens if my capital event is delayed?
We can often extend the loan or restructure terms to align with your updated timeline.
