Tuesday, April 15, 2014

More About Master Funding Solutions

We developed Master Funding Solutionssm in order to make traditional real estate leases more beneficial.  Deciding to rent the real estate you use in your daily business versus owning it is a strategy that can make you richer.  Let’s look at why that’s true.  Real estate leases replace the need for traditional mortgage debt and also replace your high-cost equity that mortgage lenders require.  This allows you to lower the overall cost of your capital, which adds to your shareholder value.

If you are considering leasing your real estate, there are some important things to remember.  The majority of leases, like traditional bank borrowings, inflict restrictions that can limit your wealth creation.  Those restrictions typically stem from landlord limitations – in other words, their problems become your problems.  To eliminate these typical landlord limitations and to provide you additional flexibility, we have designed a program that, in the end, has the effect of more than doubling your shareholder wealth potential.  We call our program Master Funding Solutions. This program gives us the ability to offer you flexibility that the typical real estate landlord is unable to provide, including:

  • Expansion Funding: We can fund the cost of new builds and conversions.  Our gradually funded lease products drastically improve efficiency by providing up to 100% financing minus traditional banking fees.
  • Springing Equity: We are able to provide funds for property renovations on assets leased from us.  This investment can unleash additional shareholder wealth for you, which would otherwise be funded with your own scarce and costly equity.  We call this capturing opportunity value.
  • Opportunity Cost Insurance: We can address underperforming locations on assets leased from us through substitution rights and other means.  Our ability to address underperforming locations is similar to buying an insurance policy against your downside risk.  We call this opportunity cost containment.
  • Real Estate Power: We can tackle sensitive real estate issues for properties leased from us.  For example, the use and future development of adjacent surplus land, which we have settled through partition rights, select purchase options and other creative solutions allowing you to manage your real estate.
  • Tax Efficiency: We supply solutions designed to increase the tax efficiency of real estate leasing.  The options we provide not only increase net cash proceeds to you but decrease your rents at the same time, resulting in greater shareholder wealth for you.

Master Funding Solutions is transformative.  It transforms real estate leasing into what it ought to be: a flexible tool that allows you to increase your shareholder wealth.  Master Funding Solutions stems from our core belief that financing solutions should create opportunities for your company and not limit them.

Feel free to contact me (Chris Volk), or one of our Managing Directors for more information about our Master Funding Solutions.