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    Need_to_Know's Avatar
    Need_to_Know Posts: 3, Reputation: 1
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    #1

    Aug 27, 2008, 10:12 AM
    Has Anyone Ever Utilized Senior Life Settlements (SLS) used as 100% Collateral
    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's Avatar
    RE Solutions Posts: 1, Reputation: 1
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    #2

    Nov 8, 2008, 12:42 PM
    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 assessment of the way Life Settlements can be utilized is right on. There are a number of funding companies being pursued at this moment to accommodate 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's Avatar
    Ron Rosen Posts: 2, Reputation: 1
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    #3

    Feb 28, 2009, 10:59 PM
    Quote Originally Posted by RE Solutions View Post
    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.
    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's Avatar
    Ron Rosen Posts: 2, Reputation: 1
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    #4

    Feb 28, 2009, 11:02 PM
    [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's Avatar
    Riverbender Posts: 1, Reputation: 1
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    #5

    May 22, 2009, 01:37 PM
    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's Avatar
    ricster33 Posts: 1, Reputation: 1
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    #6

    Aug 16, 2009, 05:57 PM
    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's Avatar
    RE Development Posts: 1, Reputation: 1
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    #7

    Oct 8, 2009, 02:12 PM
    Quote Originally Posted by Need_to_Know View Post
    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.
    __________________________________________________ __________________
    __________________________________________________ __________________

    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 SLSís, 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 SLSís?
    MEGOLD's Avatar
    MEGOLD Posts: 1, Reputation: 1
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    #8

    Oct 13, 2009, 08:14 PM
    Quote Originally Posted by ricster33 View Post
    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.
    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's Avatar
    consortia Posts: 1, Reputation: 1
    New Member
     
    #9

    Oct 19, 2009, 05:30 PM
    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.
    vitale99's Avatar
    vitale99 Posts: 2, Reputation: 1
    New Member
     
    #10

    Nov 26, 2009, 01:15 PM
    I am a broker providing Life Settlements can be utilized for Collateral Enhancement. We can also provide funding on a portfolio of assets. If there is any interest send me an email
    At vitale99@pacbell.net
    Frank
    CRF Investors's Avatar
    CRF Investors Posts: 2, Reputation: 1
    New Member
     
    #11

    Mar 12, 2010, 05:53 PM
    I need a loan on SLS, please contact me Donna Allison 720 331 8630 donna@crfiinvestors.com
    CRF Investors's Avatar
    CRF Investors Posts: 2, Reputation: 1
    New Member
     
    #12

    Mar 12, 2010, 05:57 PM
    I need a loan on SLS, please call me Donna Allison 720 331 8630 donna@crfinvestors.com
    advtech's Avatar
    advtech Posts: 4, Reputation: 1
    New Member
     
    #13

    Mar 24, 2010, 08:01 AM
    I have 2b in SLS want to liquidate it for $.10 to $.15 on the dollar 200M-300M.
    advtech's Avatar
    advtech Posts: 4, Reputation: 1
    New Member
     
    #14

    Mar 24, 2010, 08:01 AM
    I have 2b in SLS want to liquidate it for $.10 to $.15 on the dollar 200M-300M.
    advtech's Avatar
    advtech Posts: 4, Reputation: 1
    New Member
     
    #15

    Mar 24, 2010, 08:01 AM
    I have 2b in SLS want to liquidate it for $.10 to $.15 on the dollar 200M-300M.
    advtech's Avatar
    advtech Posts: 4, Reputation: 1
    New Member
     
    #16

    Mar 24, 2010, 08:04 AM

    I have $2B in SLS bonds, all by which are 144a and liquidating them for 10%-15% face value ($200M-$300M)
    jax03's Avatar
    jax03 Posts: 1, Reputation: 1
    New Member
     
    #17

    Mar 24, 2010, 08:49 PM
    Quote Originally Posted by advtech View Post
    I have $2B in SLS bonds, all by which are 144a and liquidating them for 10%-15% face value ($200M-$300M)

    advtech,
    Email me at mattjackson34@hotmail.com I can help you with this. Also, if you can provide a little more info. That would be great. Thanks.
    aechon's Avatar
    aechon Posts: 1, Reputation: 1
    New Member
     
    #18

    Apr 20, 2010, 05:40 AM
    Advtech please contact me with full details thanks. Cdt1@cia.com
    kmm1712's Avatar
    kmm1712 Posts: 1, Reputation: 1
    New Member
     
    #19

    Sep 24, 2010, 04:58 PM
    Dear Consortia,

    I am very interested in your solution, can you contact me at kmm1712o2 at gmail dot com to outline further,

    Many regards

    kmm1712


    Quote Originally Posted by consortia View Post
    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.
    frank taylor's Avatar
    frank taylor Posts: 1, Reputation: 1
    New Member
     
    #20

    Jul 25, 2011, 11:01 PM
    I have a product that securitizes the premiums due for the SLS portfolio, the coupon on the bond we will sell to raise the capital and a put to secure the future market value of the portfolio. I would only purchase the SLS on the basis of dollar for dollar.
    If you want to know more contact me at fwt1951@aol.com

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