top of page
Writer's pictureNader Hashemian

Can I Use the Equity in My Real Estate Portfolio to Obtain a Loan?

Recently, PCA has received inquiries from real estate entrepreneurs who have portfolios of properties with older mortgages, many of which carry interest rates significantly lower than today’s market rates. Over time, these properties have amortized their loan balances while appreciating in value, building equity for their owners. 


Traditionally, real estate professionals might have refinanced their properties to access incremental liquidity for new investments. However, in today’s environment, this could mean recapitalizing at much higher interest rates. Additionally, refinancing individual properties may yield limited liquidity, which may not meet the needs of the entrepreneur.


This is where PCA’s lending product stands out. We offer real estate entrepreneurs the ability to tap into the equity value across their entire portfolio, allowing them to maintain their favorable mortgage terms while accessing new capital – without the need to refinance each property.


Historically, portfolio-level loans of this sort have been accessible only by large-scale real estate firms with vast portfolios. However, PCA provides this unique financing tool to mid-sized and smaller real estate entrepreneurs, offering them the strategic flexibility traditionally reserved for larger players.




How Portfolio-Level Liquidity Can Support a Real Estate Investment Strategy

Real estate entrepreneurs, whether developers, opportunistic investors, or value-add operators, often encounter liquidity needs beyond what can be obtained via traditional mortgages. Some potential scenarios where PCA’s portfolio-level financing can be useful include:


  • Developers looking to purchase land or fund pre-development expenses

  • Real estate private equity managers seeking to move quickly on an acquisition in advance of raising their next fund

  • Owners who wish to make competitive all-cash offers to win deals in a competitive market

  • Distressed or opportunistic investors who need financing for properties that can’t yet secure traditional mortgages until they have been stabilized 

  • Entrepreneurs requiring additional equity to close financing gaps when traditional financing falls short 

  • Investors needing a liquidity bridge to manage operations or seize opportunities before an anticipated liquidity event


Access the Trapped Equity Value in Your Real Estate Portfolio

If you’re seeking opportunistic liquidity and have an existing portfolio of productive real estate, consider tapping into the Net Asset Value of your portfolio to raise the capital you need. Contact PCA today to explore how our innovative financing solutions can unlock the trapped equity value in your portfolio, providing you with the liquidity to drive your business forward and seize new opportunities.


79 views0 comments

Comments


bottom of page