Senior Life Settlement Policies (SLS) portfolios, Don't sell them, Leverage them to create a Bank instrument and make money with them.
Dear Real Estate/Mortgage/Finance Professionals: Do you have clients who own SLS Portfolios from an A rated insurance carrier, which are worth at least 1BB USD (May go down to 500MM on case by case)?
If your clients are willing to sell them at 20% or less, our finance solution could help them leverage their portfolio to create a cash backed financial bank instrument, either a Bank Guarantee (BG or a Stand by letter of credit(SBLC).
Using that cash backed instrument, our lender can monetize that instrument and the client will receive a non-recourse loan (this loan does not have be paid back).
The client still owns the policy.
SLS Monetization Solution Step by step process:
1. Client comes to us with SLS portfolio of at least 1B USD (May go down to 500MM case by case).
2. The rating of these policies are no lower than A.
3. Client agrees to move their portfolio to the investment bank's trust account, in a major bank, (Main reason to move to the bank is to put that SLS portfolio in the banking system) Or keep the policies at their bank and have that bank issue an endorsed instrument.
4. Client has full control of that account no one else does. Our Investment bank has control of the trust account but the assets (policies) the client keeps control to pay premiums.
5. The investment bank will create a financial instrument up to (40-60%) of the face value of the portfolio. Our bank will issue a fully endorsed financial instrument that our investment bank can monetize at 70% of the face value of the financial instrument.
6. The Financial instrument will be cash backed.
7. The investment bank will take the financial instrument and monetize it.
8. The loan will be a non-recourse loan which does not have to be paid back. YES, depending on the value of the assets (policies).
9. Turn time once all of the docs are submitted is, depends on the amount requested. From start to finish is 14-45 days depending on the amount.
If you would like more information, I can setup a call with my investment Banker and your client, the Banker only wants to talk to the principles.
Just like any product or service, if there is a too much supply rather than demand, it will hard to be monetize
these assets, (Market is saturated with SLSP, as of May 2010) however we may an appetite for SLSP in the future.
Karna Hoskote
MBGM Capital Inc
http://www.commercialfinances.net
312-628-7366
khoskote@commercialfinances.net
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