10/13/2026
They Don’t Use Debt. So Why Did They Call Us?
We often talk about borrowers who are not interested in MAX Leverage. Instead of preaching this point, we wanted to share a recent funding where that strategy played out.
What happens when the first thing a prospective client tells you is, “We buy properties without using any debt”?
That’s how this relationship kicked off.
The client and his business partner have been in the real estate game for decades. They have a proven acquisition strategy, and taking on debt has never been part of their equation.
But their next acquisition presented a timing issue.
The client asked us a question we welcome. Would we consider a lower LTV loan to bridge the gap between the capital they’d already raised and what they needed to close the purchase?
Obviously, we said YES.
What we found interesting is how the client justified taking on debt when they’d spent decades avoiding it.
When the client identified this off-market 10 Unit Property, they made sure to negotiate a closing with a few units vacant, allowing them to get started on their value-add strategy on Day 1.
Once they’ve established their proof of concept by updating the units and increasing rents, the plan is to go back to their investors, raise additional capital, pay off our low-leverage bridge loan, and return to their long-term buy-and-hold strategy with little to no debt.
That’s their bread and butter.
Instead of passing on the acquisition because of timing, or leveraging the property beyond a level they were comfortable with, they took out a smaller loan.
They borrowed only what they needed, with a clear plan to raise additional capital and return to their preferred investment strategy on a relatively short timeline.
Our loan wasn’t designed to maximize proceeds. It was tailored to solve a timing problem while the client executes a business plan they already know works for them.
Not every borrower needs MAX leverage. Sometimes a little leverage is the right amount of leverage.
If you’re looking for a tailored financing solution, we’re a phone call away.
