How UrbanTrust Properties Scaled with Strategic Credit

UrbanTrust Properties secured a $150K line of credit to fund acquisition costs and renovation projects across Manhattan, enabling 40% portfolio growth within 18 months.

Thomas Underwood, Principal Broker and Managing Director of UrbanTrust Properties LLC a real-estate business in New York standing confidently

Executive Summary

UrbanTrust Properties LLC, a Manhattan-based real estate investment and development firm, needed capital to accelerate its acquisition and renovation pipeline. The company had identified several promising investment opportunities but lacked the working capital to execute multiple projects simultaneously while maintaining operational stability.

The Challenge

Limited liquidity to fund earnest money deposits and closing costs on multiple property acquisitions
Insufficient working capital for renovation and holding costs between property acquisition and stabilization
Inability to capitalize on time-sensitive market opportunities due to capital constraints
Need for flexible, revolving credit structure rather than fixed-term financing

The Solution

UrbanTrust Properties secured a $150,000 unsecured business line of credit based on strong financial performance, established banking relationships, and a proven track record in the New York real estate market. The flexible credit structure provided the capital cushion needed to execute multiple transactions simultaneously without overextending the company's balance sheet.

The funds were strategically deployed across three key areas: $65,000 allocated toward earnest money deposits and acquisition costs for three targeted properties in Brooklyn and Queens; $55,000 dedicated to renovation and construction expenses including permits, labor, and materials; and $30,000 reserved as working capital buffer for operational expenses and holding costs during the stabilization period. This diversified deployment approach allowed UrbanTrust to maintain momentum across their pipeline while preserving cash flow for day-to-day operations.

Thomas Underwood, Principal Broker and Managing Director
"The $150K line of credit was transformational for our growth strategy. It gave us the flexibility to capitalize on market opportunities without tying up our capital reserves, allowing us to scale operations faster than we anticipated."

The Outcome

Closed 3 additional property acquisitions totaling $2.8M in aggregate purchase price within 14 months
Completed full-scale renovations on 6 units, increasing portfolio rental income by 35% ($18,500/month)
Maintained consistent occupancy rates above 94% while executing simultaneous renovation projects
Reduced time-to-market for stabilized properties by an average of 45 days through improved cash flow management

Conclusion

The line of credit provided UrbanTrust Properties with the strategic flexibility to execute on its growth ambitions without compromising financial stability. By having accessible working capital, the company transformed from a capital-constrained operator into an aggressive but prudent acquirer capable of managing multiple projects in various stages of development. The credit facility essentially served as a force multiplier for the team's existing expertise and market relationships.

Looking Forward

UrbanTrust Properties plans to refinance its line of credit to $250,000 in Q3 2024 to support an expanded acquisition strategy targeting undervalued multi-family properties in emerging neighborhoods. The success of this initial credit facility has positioned the company for institutional-level growth, with management exploring strategic partnerships and potential capital raises to accelerate the trajectory further.