Banks Will Not Lower Rates Anytime Soon. Let Me Show You a Better Way to Borrow.

Are you stuck in a waiting game, hoping for banks to lower rates or offer refinancing options? You're not alone. Many investors find themselves in a bind, facing rising interest rates and limited financing options from traditional lenders. Let’s explore the common challenges I see borrowers facing today and how life company loans can provide a path forward.?

Problem 1: Skyrocketing Interest Rates and Insurance Costs

Borrowers who have historically relied on banks for financing are facing a harsh reality: rates have more than doubled, and insurance costs have skyrocketed. Today’s plummeting investment returns make it unappealing for borrowers to lock in today's higher rates.

Solution: Life company loans offer competitive rates and flexible terms, providing a viable alternative to traditional bank financing. With spreads ranging from 145 to 225 basis points over the treasury yield, borrowers can secure financing at rates that protect returns.

Problem 2: Banks Sidelined and Delayed Rate Reductions

Many borrowers are playing a waiting game, hoping that banks will lower rates or offer them a refinance on their properties. However, most banks are currently "pencils down" on all CRE lending, and those still lending require significant deposits of 10-25% of the loan amount. Furthermore, banks are hesitant to compete, fearing regulatory scrutiny and potential losses.

Solution: Life company loans fill the void left by sidelined banks, providing borrowers with access to much-needed financing. With no deposit requirements and ample capital to deploy, life companies offer flexibility and complementary solutions that work better for borrowers' specific needs.

Problem 3: Borrowers' Belief in Rate Reductions

Despite the education efforts , many borrowers believe that rates are on the verge of coming down. This belief has led them to delay refinancing, playing a risky game of Russian roulette with their loan maturities.

Solution: Life company loans provide a stable and reliable financing option that doesn't depend on unpredictable treasury rate reductions. With fixed-rate options and flexible prepayment terms, borrowers can secure financing without worrying about fluctuating interest rates.

Finding Opportunities with Life Companies

In a market hungry for innovation and flexibility, life company loans stand out as a beacon of opportunity. Whether you're facing skyrocketing interest rates, sidelined banks, or limited financing options for value-add strategies, life company loans offer solutions tailored to your specific needs.

Don't let traditional lending constraints hold you back—reach out so I can connect you with a life company lender that has the right solutions for your borrowing challenges.

Schedule a 15-minute complimentary consultation: https://calendly.com/michaelbalan/