Lender relationships help drive better returns

In business as well as life, nothing matters more than trust. 

 

This is particularly important when it comes to lenders, who are extremely valuable long term partners for Alliance. Strong, trust-based lender relationships give Alliance the speed and flexibility we need to beat the market.

 

As real estate investors and fund managers, Alliance keeps many different balls in the air. We have our deal pipeline, investments that are closing, properties we own and operate, and assets that we’re selling. Every phase of this investment cycle involves different capital needs.

 

Our banking relationships aren’t just about getting a lower interest rate. They ensure that we don’t have to accept boilerplate loan agreements. Instead, we can negotiate loan covenants that give us flexibility - around payment structure, payment periods, interest rates, prepayment, and more.

 

All that flexibility helps us deliver more profit and higher returns for our investors. Some deals have time pressure. Our bankers will move quickly for us so we get to close on the firesale asset before somebody else swoops in. 

 

Real estate investing also involves complex capital structures and a wide range of financial demands. We may need extra cash to fund capital improvements, pay off other loans, or pay our preferred dividends when there is a temporary disruption in cash flow.

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Timely and flexible access to debt means we can meet all our obligations without having to tap into contingency funds or ask investors to pony up more cash. I cannot overstate how valuable this is.

 

It has taken decades for Alliance to establish our reliability and worthiness to receive flexible loan terms. Now that we’ve developed this network of regional and industry specialist bankers around the country, everything else is easier.

 

The trust of our bankers is an intangible but extremely valuable asset. We invested in relationships. Now they help deliver higher returns for our investors.

POSTED BY

Ben Reinberg

Founder & CEO  |  Alliance Group Companies

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Ben Reinberg is Alliance Group Companies' founder and CEO.

Since 1995, Alliance Consolidated Group has acquired and invested in medical properties with net leases between $3 and $25 million across the United States. With decades of commercial real estate experience, we take pride in committing to meeting the goals of our Sellers, as we consistently and seamlessly adhere to successful closings.