Additional Property Borrowing for Professionals – Podcast
This is how real estate professionals use the additional borrowing: This practical sequence shows how experienced property investors borrowing capacity are used specifically as growth levers – with variants, prerequisites and typical errors.
additional borrowing: liquidity for professionals
Original recording in German.
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What this episode covers
While many owners leave their hidden reserves unused, professionals actively control their portfolio via the additional borrowing: buy, optimize, re-evaluate, activate reserve, buy again. The result shows this cycle in concrete case constellations.
We go through the three paths and explain how the second place ranking is so popular: it leaves the favorable investment property finance untouched and can be implemented quickly – against a condition close to the mezzanine level.
Key points
- additional borrowing as an active portfolio lever instead of an emergency solution.
- Why the second rank protects the favorable investment property finance.
- Reinvestment: Acquisition, Capex, Project equity.
- Requirements: property quality, rental, debt service.
- Typical mistakes and how to avoid them.
The portfolio cycle
The result makes it clear that the additional borrowing only develops its value in conjunction with a disciplined reinvestment strategy: Every euro released must generate more than it causes in additional costs. Conservative debt service bills with buffers are mandatory.
The practical manual with example calculation is on the page "Refinance real estate", the variants on the service page of the additional borrowing.
Quick answers
Which properties are suitable for the additional borrowing?
Rented residential and commercial assets with stable cash flow and sound locations. Stronger occupancy and condition can support higher acceptable leverage.
Are there tax implications?
The borrowing itself does not trigger any tax; the deductibility of the interest depends on the purpose. This will be clarified by your tax advisor.
What is the most common mistake?
The debt service. The new rate must also bear during vacancy and maintenance – therefore professionals conservatively expect buffers.
Jürgen Kronawitter
Jürgen Kronawitter specialises in structured real estate finance. He helps property investors, developers and portfolio owners implement complex financing solutions. His work focuses on structuring and arranging senior loans, whole loans, mezzanine capital and bridge loans, as well as tailored financing for acquisitions, investment properties, developments and refinancing. By combining conventional bank lending with alternative capital sources, he develops financing structures for domestic and international property projects.
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