|
Tax-exempt bond financing typically provides higher investment leverage than a typical commercial bank financing or institutional placement because the bond financing is based upon the demonstrated debt service coverage the investment provides. That's right. The bond financing is based upon a stated debt service coverage ratio (e.g.: 1.25:1.00 for a multifamily housing transaction) being applied to current capital market rates for similar projects. The lower the interest rate in fact is, the higher the borrowing leverage. Most floats take a minimum of 90 days to close because:
To learn more about the efficacy of this type of financing being applied to your business, please contact RMC. |
Contact us today to learn about all the things that what we can do together - you and Rainmaker. The first consultation is always free and you will be impressed with the information we provide you in just one (1) call.