Has Anyone Ever Heard of or utilized Senior Life Settlements (SLS) used as 100% collateral?

This is what the Client has mapped out utilizing SLS- Do you believe a Bridge Lender or Do you know of a Bridge Lender who will Participate?

Senior Life Settlements-as 100% collateral

Collateral using senior life settlements as an institutional investment asset class, as a securitization facility for any business transactions bought at closing is a way of collateralizing any of our projects. The Explanation is below.

Various structural formats using the "collateral" exist, including 1) funding for an amount equal to the project requirements, 2) funding for an amount equal to the project requirements plus premium requirements, 3) funding for an amount equal to the project requirements, premiums, and interest requirements and/or debt service/operating costs, 4) funding for an amount equal to the project requirements as well as all other cash needs as well as total repayment of principal-all with no risk of loss of investment by the investor/lender.

BENEFITS TO PARTICPANTS
A- Issuer
1) Lower cost of financing
2) Faster funding
3) Lower or no equity "kickers"

B-Investment Bank
1) Significantly faster funding
2) More transactions completed per period
3) Ability to attract new clients
4) Higher fees, commissions and profits from "collateral"

C-Investor/Lender
1) Remove risk of loss of principal
2) Higher rate of return through participation in collateral
3) Lower reserves due to securitized feature
4) More investments due to lower reserves leading to higher investment income

$163M NEEDED FOR (Investment) - Primary lender will only loan LTV @ 25% of face value of $1.2B of Senior Life Settlements (SLS).

Step 1----Bridge lender Loans (Investment) $64M to purchase 1.2B of SLS
but keeps his loan and bought SLS in a mutually agreed upon escrow account until closing with Primary Lender.
(It takes 60 to 90 days to accumulate the SLS)

Step 2---(Primary Lender) loans $300M at closing against the 1.2B of SLS at LTV of 25% after 90 days.
$1,200,000,000 are held in a mutually agreed upon escrow account for (Primary Lender) as collateral for $300M loan.

Source of Funds:
$1,200,000,000 SLS needed to purchase with funds from Bridge Lender
-------times 25% LTV from (Primary Lender)
---$300,000,000 Monies from (Primary Lender) Loan

Step 3---At closing with (Primary Lender) Bridge lender is paid back its bridge loan and interest.
---$300,000,000 Loan Funds to (Investment) are used to cover:
1) (Investment) ------------------- $163,000,000 (To Build Investment)
2) Bridge Lender ---------------------64,000,000 (repay bridge loan)
3) Bridge Interest @25%----------16,000,000 (pay interest)
4) Pay SLS premiums/fees-------57,000,000
Total Use of Funds------------$ 300,000,000

Step 4---SLS of $1,200,000,000 stays in escrow account to pay principal

Return of Principal plus ROI
A) Could be liquidated at anytime to repay $300M loan plus interest.

RE Solutions

Hi I am a commercial investor in the Real Estate Industry. I am doing research on Life Settlements as a funding source for our properties and investments. Your question is legitimate and seems to have validity. Your assesment of the way Life Settlements can be utilized is right on. There are a number of funding companies being pursued at this moment to accomodate your situation. As I receive more information regarding our situation and funding sources I will communicate that with you. I may even be able to help get your request funded. Good Luck.

Ron Rosen

Look to fund acquistion require $ 5mil, would like to use Life settlements, need lending institution, if you have a funding source please advise

Ron Rosen

[quote=Ron Rosen;1576420]Look to fund acquistion require $ 5mil, would like to use Life settlements, need lending institution, if you have a funding source please advise[/QUOTE
Please advise if you have funding source

Riverbender

What is the value of the SLSs that you are in possession of? What is the projected revenue stream of the acquisition in order to pay back loan on SLSs? How do you plan to pay down/off the premiums on the SLSs during the payback period?
I may help with that but need some of the basics first.

ricster33

I have access to a company that can provide this type of funding. Contact me Eric Callner at ecallner@gmail.com for more information. Please send exec summary along with your email. Thank you.

RE Development

__________________________________________________ __________________
__________________________________________________ __________________

This scenario suggests that I can purchase Life Settlement Policies for .05 on the dollar and later sell for .25 on the dollar, is that correct? And is that realistic?

If there is real estate that is used as collateral in addition to the SLS’s, what might the LTV be on the financing?

Do you have sources available that fund against such collateral?
Do you have sources available that sell or broker SLS’s?

MEGOLD

eric: I have investor who would like a lender to loan on $152 million of senior life settlement policies together with real estate to be acquired with funds. All policies to be prepaid premium. All policies from a to aaa rated us life companies. Please advise.

Mark e. Gold
201-960-8108

consortia

There is now a viable alternative to life settlements. I have a provider than can issue a loan, subject to policy qualification, that is greater than the cash value that could normally be borrowed under the terms of the policy, but less than the full face amount. Similar to a traditional life settlement, the policyholder may receive an upfront amount (as a loan) and no longer pay premiums.

Here is the difference:

While the policyholder is alive, our solution keeps track of the initial payment and any additional premiums paid, deferring them like as a loan balance. On the death of the insured, the beneficiary receives the death benefit less the value of the accumulated loan balance. If the accumulated balance is larger than the face amount, the beneficiary does not have to repay the excess, and in some cases, the beneficiary receives at least 10% of the face amount, regardless of how large the accumulated balance becomes. Since any lump sum is taken as a loan, it is argued that unlike a Life Settlement the lump sum loan incurs no tax. A small fee applies to the analysis of the policy.