Investors are offering up to $100 million in debt financing with guaranteed 7-8% returns instead of equity. Interest rates vary by loan-to-value ratio: 30% LTV gets lower rates, while 90% LTV reaches 11-12%, but the investor's return stays protected either way.
You had mentioned raising the debt side through investors, not traditional banking or whatever. Right. Uh, could you raise a larger percentage of debt than a bank would?
We could probably raise up to $100 million in debt if we're able to contractually guarantee the investors that they're going to get 7 or 8%.
Right now, investors are more interested in debt than equity. Right. What's loan to cost? Like market rate, what's happening?
That would be determined by us. Because we're the bank.
So I think it's Aaron's point is right now we're talking, I got to pipe you up.
We could probably fund 90% of it through that. So, and again, it's because of the fact that at 30%, you're able to get lower rates. When you go 90%, your rates go up, right? So at a, at a 90% rate, it's probably closer to 11 or 12 because of the risk involved with that. But we're still guaranteeing the, the, we're still guaranteeing the investor 8%.
Well, I don't know if we need to go up to 90.
It's just an example. Like I'm just letting you know what within Titan 23, what we're able to do by being the bank, we're able to structure it these ways.
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