Strategy
Global Economic Outlook
The assets in which ECF invests are "bankable" on their face, with favorable terms. Bulk Financiers (Banks, Conduits) provide 80% of Acquisition Financing at 250 to 300 basis points above 10 year Treasuries (current rate approx 5.75%), 10 year call, and amortized over 30 years.
Banks do this, as you know, because the underlying asset has generated predictable, persistent income at a debt coverage ratio of +1.25 for at least 2 years. They value our product because it had been generating and will continue produce reliable cash flow, on the day of purchase, and well into the foreseeable future.
Banks may not loan you a dime to purchase their own company stock. They will loan you 80% of the money you need to purchase a business that generates predictable, persistent and reliable income, all day long. The favorite loan of a banker has been and always will be Apartment Buildings. For this reason, we already have 80% of our capital, within 45 days of asking, in place for acquisition.
Banks are risk-adverse and love dependable, predictable cash flow that can be seen and understood; as do we, as do our investors.
Banks do this, as you know, because the underlying asset has generated predictable, persistent income at a debt coverage ratio of +1.25 for at least 2 years. They value our product because it had been generating and will continue produce reliable cash flow, on the day of purchase, and well into the foreseeable future.
Banks may not loan you a dime to purchase their own company stock. They will loan you 80% of the money you need to purchase a business that generates predictable, persistent and reliable income, all day long. The favorite loan of a banker has been and always will be Apartment Buildings. For this reason, we already have 80% of our capital, within 45 days of asking, in place for acquisition.
Banks are risk-adverse and love dependable, predictable cash flow that can be seen and understood; as do we, as do our investors.