Life Insurance Companies as Lenders

By Venture Mortgage Corporation

Understanding the Power of Life Company Funding

When most of us think about life insurance companies (also known as “life companies”), we think of purchasing a policy to plan for the future. However, thinking about what life companies do with our premiums will help you to understand why life insurance companies are an excellent source of capital financing for commercial real estate.

Life companies think in the long term: premiums are collected over a period of decades, and making stable, long-term investments is how life insurance companies ensure that funds are available when a benefit payout comes due. While life insurance companies do invest in some stocks and bonds, about 1/3 of their multi-billion dollar portfolio of investments is CRE, or commercial real estate. Because of this long-term outlook, life companies are often willing to make 10, 15, 20, or even 25 year long term fixed loans; in contrast, most big banks prefer short term loans because they generally like to focus on more immediate returns. Of course, the stability of knowing what to expect for many years to come presents a distinct strategic advantage for you as a commercial real estate investor!

The next question that comes to mind is: “How can I get access to the capital and favorable terms that life companies have to offer?

The answer is that Venture Mortgage Corporation has been entrusted by life companies to bring commercial real estate investments to the table. Venture Mortgage has formed key strategic partnerships with several major life insurance companies looking to finance commercial real estate transactions. If you are seeking favorable rates, superior service, and a partner to make sure you are getting the most favorable terms possible, contact Venture Mortgage today to discuss your financing goals.

For more than 20 years, Venture Mortgage has been interacting with borrowers and lenders every single day to deliver creative, cost-effective solutions for commercial real estate transactions. As a result, we have forged long-term, trusted relationships with lenders and clients alike. We deliver our clients the most competitive commercial real estate financing structures available in the marketplace. Why not call us now to get a comparison rate quote? Contact us today: we can give you the ability to make a fully-informed decision about available mortgage rates and lending sources available to you!