Skip to content
✨ Looking for Ashmore Partners? That's us! New name, same great people. Read more on our blog.

Cross Collateralization – How to Keep Cash on Hand While Expanding Your Business

Working capital is critical for builders and fix and flip real estate investors. It’s used to buy building materials, pay contractors, obtain permits, and more. It also serves as a buffer for the many unexpected costs that pop up during a real estate project. So, how do you keep as much cash on hand as possible while flipping houses to maintain a diverse and robust portfolio? Cross collateralization.

Cross collateralization is a method used by lenders to leverage the equity in a property you own free and clear to secure another loan. So imagine it’s time to close on the next property but you’re short about $30,000. You know you have trapped equity in your free and clear investment property to leverage but what’s the best way to do so?

Traditionally you could take out a mortgage on your free and clear house. But now you have a monthly mortgage payment on top of the fees you paid to the bank to originate that mortgage. You have equity, yes but at a cost that could reach $5,000 or more for the mortgage.

Instead, cross collateralization reduces the amount of money you need to bring to the closing table which means more money in your pocket. There are no transaction fees, just the lien. So, if the collateral property is worth $100,000, you can apply up to 50% or $50,000 to reserves with Builders Trust Capital in most cases. Both properties are listed on the new mortgage for your investment. This ensures your lender that they will get their money back and allows you to continue to leverage your property without having to come up with the cash all at once. Use your trapped equity instantly without needing to take out a 30-year loan, cash-out refinance.

The benefits of a cross collateralized loan:

  • Reduces cash at closing
  • Eliminate upfront costs of a cash-out refinance
  • Avoid a new monthly mortgage payment
  • Help maintain higher levels of working capital
  • Potentially qualify for a lower interest rate

Builders Trust Capital creates loan programs that are tailored to and structured to borrowers’ needs. Our team looks at your financial picture holistically and offers you a loan program customized to your specific requirements whether you’re an experienced or first-time real estate investor. Focused on speed, flexibility, and customer satisfaction. Ready to discuss your funding needs? Call us at 856-422-3232. Let’s get started working together.

Builders Trust Capital Client Success Stories

Partner with an efficient, personable team who has delivered $120,000,000 in real estate loans

Builders Trust Capital Success Story Photo: 1185 Route 9 South, Cape May Courthouse, NJ
  • Purchased $185,000
  • Rehab $150,000
  • ARV $475,000
  • Fix & Flip Philadelphia, PA
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $1,675,000
  • Rehab $450,000
  • ARV $3,955,000
  • Fix & Flip Cape May, NJ
Builders Trust Capital Success Story Photo: 10 Anderson, Morristown NJ
  • Purchased $550,000
  • Rehab $208,286
  • ARV $1,005,000
  • Fix & Flip Haddonfield, NJ

How to Finance Your Real Estate Investment

Our process is simple! We handle the entire loan process in-house. Loans are closed in as little as 10 business days.

Get Started

Fill in the form or call us at 856-422-3232 so we can contact you and begin working on your loan. We're local and happy to meet with you to learn your funding needs.


Complete your application and provide supporting documentation.

Proof of Funds

Increase your buying power with a proof of funds (POF) letter.

Loan Processing

Your appraisal and title work are ordered. Your application documents are reviewed. Our in-house processing team will contact you with any questions or additional documentation required.

Get Funded Now

After underwriting is complete, we make sure your closing docs are ready at the table and funds are disbursed timely so you can start your work without delay.


Photo of Alexandra Petruchenya

I appreciate your team's support during the entire rehab process for my property. This is my first deal, there were a lot of unknowns that came with that. The construction process intimidated me and held me back from doing real estate for several years. Kurt has been phenomenal, he was a wealth of knowledge. I appreciate how he gets in touch to talk through in-scope item completion and aligning on ways to ensure my construction draws are adequate. I'm thankful to have someone who has my business's best interests at heart.

Alexandra Petruchenya recommends Builders Trust Capital
Photo of Sharina Jackson

I recently completed a cash-out refinance transaction with Builders Trust Capital. I would like to say thank you to Anthony for your partnership during this process, your excellent customer service and professionalism made the process easy for me.

Sharina Jackson recommends Builders Trust Capital
Photo of Raphael Akinsete

If you are a newbie investor, I highly recommend Builders Trust Capital because your first few deals will impact your outlook on real estate investment. If you are a seasoned investor, I also recommend the company as they now offer products for both quick flips and long holds. This way you are covered in both your entry and exit strategy. As a longtime client of Builders Trust Capital I can testify that they are the real deal and there are genuinely good people behind this business.

Raphael Akinsete recommends Builders Trust Capital Oct. 2020
Photo of Kristian Latham

Just finished up my first project with the Builders Trust Capital team and wanted to share my appreciation for the good business. Success is often driven by effective relationships, and Builders Trust Capital’s partnership assisted me in strengthening my team all around. The process from beginning to end was smooth and efficient. They are a great partner to have to create opportunities for rookie and veteran investors.

Kristian Latham recommends Builders Trust Capital Aug. 2020
Photo of Timothy Rosenblum

Builders Trust Capital lives up to its name. They have truly been a partner to me with my projects. The process from underwriting to construction inspections has never wavered from their initial promise and Ive always been met with professionalism and efficiency. Rare in this space.

Timothy Rosenblum recommends Builders Trust Capital April. 2021
Photo of Mike Bonadies

Builders Trust Capital is an incredibly responsive and flexible lender for RE investors. They have been able to work with my unique situations and helped us close on properties no one else could. They know their local area well and can offer guidance. I highly suggest them.

Mike Bonadies recommends Builders Trust Capital

Ready to discuss your funding needs?

Just contact us by phone 856-422-3232. If you prefer, send us a message and we’ll contact you shortly. Let's get started working together.

This field is for validation purposes and should be left unchanged.