The capital markets have changed.
Banks are constrained by deposits, balance sheets, and rising cost of funds.
Institutional lenders aren’t.
The Liquidity Source connects borrowers directly with life companies, pension funds, and institutional capital built for long-term real estate financing.
Banks were not built for this speed or magnitude of change
For over fifteen years, banks operated in a world of near-zero interest rates.
That environment no longer exists.
When the Federal Reserve rapidly raised rates in 2022 — the fastest increase in over 40 years, due to the rise in inflation — the economics of bank lending changed dramatically.
Raising rates from 5.0 to 5.25
• Paying 4%+ for deposits, drastically changing cost of funds
• Holding mortgages written at 3-4%
• Managing balance sheets built for a different rate environment
The result?
• Higher DSCR requirements
• Mandatory deposits of ~10%
• Punitive vacancy penalties
• Uncertain execution
• Lower loan amounts
This isn’t about bad banks.
It’s about structural mismatch.
Institutional lenders — including life insurance companies and pension funds — operate under a completely different model.
They don’t rely on retail deposits.
They don’t manage branch liquidity.
They don’t need capital reserves or treasury relationships to fund loans.
Instead, they deploy long-duration capital specifically designed for real estate assets.
That difference creates meaningful advantages for borrowers:
Capital is migrating to where it is most efficiently matched with real estate.
A Better Way to Source Capital
FOLLOW THE CAPITAL. FOLLOW THE LOGIC. FOLLOW OUR LEAD.
The past decade of bank-dominated lending was shaped by zero interest rates and lower deposits.
That era has ended.
As markets evolve, borrowers who understand where capital is moving will have a major advantage.
Institutional lenders are stepping forward to fill the gap — providing stability, certainty, and long-term financing solutions.
The question today isn’t whether capital exists.
It’s how efficiently you’re sourcing it.
No unnecessary banking requirements. Just efficient capital matched to real estate.
If you are financing stabilized commercial real estate and want to explore institutional lending options, we’d be happy to review your opportunity.
Submit a deal or connect with our team.