Smart Financing Strategies: How CREI Partners Uses Conservative Debt to Protect Investor Returns

Foreign. How does the way we finance a deal protect your investment? Hi, I'm Wayne Courage iii, Managing principal of CRUI Partners. The financing debt on a property can make or break the deal, so we take a very careful approach here. We typically use lower leverage than the max the bank will give. That means we might borrow 65% of the purchase versus this 80% for example. So this project isn't over leveraged. It gives us lower debt payments and more cushion in the cash flow. We also seek fixed interest rates or long term rate locks, especially in uncertain rate environments. To avoid surprises, we do take a floating rate. We budget for and purchase interest rate caps insurance against rates rising too much. We structure our loans with adequate term link plus extension options so we're not forced to sell in a bad market due to a loan coming due. In short, we treat debt like a tool that must be handled with respect. By being conservative and strategic with financing, we reduce risk and increase the stability of your returns. Debt doesn't have to be a dirty word in real estate when used right. To see how we wield financing prudently, join our free Passive Investor coaching program@ passiveinvestorcoaching.com we'll teach you why safe and smart financing is key to an investment.