The Power of Life Company Financing for Multifamily Investments
Rising receiverships and foreclosures underscore the risks of short-term bridge loans in today's multifamily market. For greater stability, consider long-term, fixed-rate financing from life insurance companies.
As Director of SF Capital, I have seen firsthand the challenges borrowers face. Short-term loans expose them to refinancing risk, potentially leading to maturity defaults, and forced paydowns. Life company loans, often fully amortized with no performance covenants, offer a powerful alternative.
Benefits of Life Company Financing:
Eliminate Maturity Risk: Fully amortizing loans remove the need for refinancing, mitigating market volatility, while periodic open periods provide flexibility.
Reduce Covenant Pressure: Fewer performance covenants provide long-term security.
Predictable Debt Service: Fixed rates ensure consistent payments, simplifying cash flow management.
Long-Term Perspective: Life companies understand real estate cycles and offer greater stability.
In today's uncertain market, stability is key. Life company financing provides a solid foundation for your multifamily investments.
Contact SF Capital to explore how this strategy can benefit your portfolio.
