The best financial partner is one with partnerships

The adage that “two heads are better than one” is true for many things, and that includes the institution that you borrow from. In fact, says Cambridge Realty Capital Founder Jeffrey Davis, a dozen (or more) are even better still. “Cambridge has become more and more convinced over the years that ‘if you can’t teach them, join them’ is truer than ever when it relates to senior housing and different ways to provide capital structures for clients.”

senior living borrowers

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Cambridge has, in recent months, stepped up its campaign to recruit new lending partners, while also revisiting and refining existing ones. “The more diverse a network of partners we are able to develop, the more capital and capital structure options we have available to us. The greater the options, the more we are able to offer our senior living borrowers, and the more borrowers we will be able to serve” Davis stated.

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A prime example is that of a particular Cambridge client who was a relatively new and untested nursing home owner. The client had several years of experience working in the nursing home industry, where he started out as a maintenance worker and worked his way up the ranks to executive management. He was ready to strike out on his own and purchase a facility that was in need of rehabilitation. The problem was that no bank would lend him the money. Despite his experience in healthcare management, they were unwilling to take a risk on him as an owner.

Cambridge, however, saw things differently. "We believed that he could prove himself as an owner," recalled Davis. So Cambridge purchased the facility itself and contracted its management to the client's newly-formed company. "The idea was that he would have a few years to turn the facility around. If all of his conditions were met, Cambridge would sell the facility back to him."

The client exceeded Cambridge's expectations and was eventually able to obtain a loan to purchase the facility himself. "These are the kinds of things that Cambridge can do simply because of the partnerships that we have," Davis iterated. "We have more flexibility than the average bank to think outside the box, and to offer loan structures that are more individually tailored to the client's specific needs and unique situations. We are essentially able to throw out the bank lending manual."



About the Author

Jacob Wolinsky
Jacob Wolinsky is the founder of ValueWalk.com, a popular value investing and hedge fund focused investment website. Prior to ValueWalk, Jacob was VP of Business Development at SumZero. Prior to SumZero, Jacob worked as an equity analyst first at a micro-cap focused private equity firm, followed by a stint at a smid cap focused research shop. Jacob lives with his wife and four kids in Passaic NJ. - Email: jacob(at)valuewalk.com - Twitter username: JacobWolinsky - Full Disclosure: I do not purchase any equities anymore to avoid even the appearance of a conflict of interest and because at times I may receive grey areas of insider information. I have a few existing holdings from years ago, but I have sold off most of the equities and now only purchase mutual funds and some ETFs. I also own a few grams of Gold and Silver