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.
SF Capital’s Director, Ryan Denomme, has 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:
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Eliminate Maturity Risk: Fully amortizing loans remove the need for refinancing, mitigating market volatility, while periodic open periods provide flexibility.
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Reduce Covenant Pressure: Fewer performance covenants provide long-term security.
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Predictable Debt Service: Fixed rates ensure consistent payments, simplifying cash flow management.
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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.
