Investor Creates $750,000 in Equity with Longleaf Lending Portfolio Loan

Investor Creates $750,000 in Equity with Longleaf Lending Portfolio Loan

November 02, 2023

This BRRRR portfolio loan consisted of 17 single-family properties and 24 doors located in San Antonio, Texas.

With the help of Longleaf Lending, the borrower negotiated the acquisition for $1,700,000 during April 2020.  The seller had previously entered into a contract for $1,850,000, but that buyer couldn’t find financing.

The buyer entered into a 6 month lease with the seller prior to acquiring the property in February 2021. During the lease period, the buyer operated the rental properties and paid rent to the seller.

The investor then purchased the properties with a hard money loan from Longleaf Lending. This enabled the investor to reduce and eliminate the amount of cash they needed to bring to close. Little cash was therefore tied up in the property.

Longleaf Lending funded most of the acquisition costs and 100% of the rehab. The property appraised for $2,400,000 as-is at the time of the purchase.

Upon a July 2021 refinance, the properties appraised for $2,700,000! The buyer was able to refinance 100% of the debt with a 30 year rental loan, trapping $0 of his own cash in the property. 

As a result, the investor also created almost ~$750,000 in equity from this deal! 

Prior to this deal, this investor had purchased 9 properties using funds from Longleaf Lending and now has grown his portfolio to 35 properties and $12,000 of monthly cash flow. 

Longleaf Lending specializes in portfolio loans and can help partner with you to structure creative transactions. If you would like to learn more, check out our program details or click here to submit your request today.