Capital from Life

Get Capital from Life for Your Loan

Numerous life insurance service providers invest their capital in real estate. Therefore, they offer commercial real estate (CRE) loan. However, these are different from other types of CRE mortgages. Most conventional banks will be more in favor to offer short-term term loans, as they focus mainly on immediate returns. 

On the other hand, life insurance companies issue long-term policies to their customers. Therefore, it takes a longer-term view of their investments and offers loan terms between 10 and 30 years.

With commercial loans from such life insurance companies,  a commercial real estate owner benefit by enjoying terms that are usually not available from traditional lenders. However, as a borrower you are highly unlikely be dealing with the insurer directly.  Therefore, securing this loan will always require you to hire an intermediary who shares a good rapport with the lending company.

 Pros and Cons of Capital from Life

There are pros and cons related to securing capital from life. Be sure to consider the source of capital carefully.

Pros

  • You can secure long-term capital from life insurance companies for 15, 20, and 30-year loan term duration.

  • You will usually get a capital with fixed-rate locked at the time of the application.

  • A great option for large businesses as the loan amount typically starts at $1 million.

Cons

  • You will have to pay a maintenance fee

  • The properties you wish to get the loan for the need to meet high standards set by the lenders of this capital.

  • All such Insurer will require you to have a good credit history.