Recently Closed: Purchase + Improvements Financing at 80% LTV
Creative financing structures can make a major difference for real estate investors — especially when preserving capital for renovations and future projects is a priority.
Recently, Keystone Capital funded a purchase plus improvements deal for a triplex property in Windsor, Nova Scotia. The borrower was an experienced real estate investor with strong credit, diversified income, and a clear refinance strategy upon completion.
Deal Snapshot
Purchase Price: ~$250,000
Renovation Budget: ~$250,000
Estimated As-Complete Value: ~$600,000
Structure: Initial advance plus staged renovation draws
Timeline: Estimated 4–6 week project
What Made the Deal Work
Higher Leverage on Acquisition
We were able to structure the purchase financing at approximately 80% loan-to-value on the as-is purchase price, helping the borrower reduce upfront cash requirements and preserve liquidity for the renovation phase.
For investors using BRRRR or fix-and-hold strategies, maintaining available capital is often just as important as securing the property itself.
Flexible Improvement Financing
The renovation funds were advanced through staged progress draws tied to project completion milestones.
This structure helped keep the renovation on track while ensuring funds were deployed efficiently throughout the project.
Additional Security Support
To further strengthen the file, we also received secondary security on another Halifax property owned by the borrower. While the additional equity was limited, it demonstrated borrower commitment and supported the overall structure.
Strong Borrower Profile
The borrowers brought several strengths to the file, including:
Strong credit history
Stable, diversified income
Approximately $150,000 in liquidity
Previous real estate investment experience
Exit Strategy
The borrower’s plan is to refinance the property once renovations are complete, based on the improved value. This allows them to repay the short-term financing and recycle capital into future investment opportunities.
Takeaway for Brokers
For clients pursuing renovations, BRRRR strategies, or value-add real estate opportunities, flexible private financing can create significant advantages.
Depending on the deal, we can often assist with:
Higher leverage on acquisition
Flexible draw schedules
Fast closings
Layered security structures when appropriate
Every file remains subject to underwriting, appraisal, and lawyer review, but experienced borrowers with strong exits continue to be an excellent fit for Keystone MIC.
