The Solution to your CRE Loan Insurance Needs
LGIS insures the top, or riskiest, 25% to 40% of the loan, which combined with borrower’s equity usually falls below the 50% capitalization target many banks require to forgo a Personal Guarantee. Policies are supported by a subsidiary of a NYSE S&P A-rated insurance company that is also A.M. Best A (Excellent) financial strength rated. Premiums are adjustable. 2.50% – 3.75% of the loan amount, depending upon equity amount, preleasing, property type and other real estate factors, such as sponsorship, markets, etc.
LGIS offers an investment grade rated insurance policy designed to pay claims. Lenders may use this in place of a Personal Guarantee, or as a supplement, to become more competitive in the market. Lenders can offer improved terms due to investment grade credit insurance policy, regulatory capital relief and a vastly improved mechanism for collection.
Borrowers and guarantors are sheltered from personal loss and lenders are insured against loss due to default. Without the threat of personal ruin, sponsors are motivated to focus all their efforts on the success of the project, and by doing so protect investor equity in case of trouble. Besides, investors will hold sponsors “feet to the fire” much more so than any lender and in a more cooperative manner to resolve a problem. This helps remove the adversarial nature of the relationship between lender and borrower and helps establish a mutually beneficial partnership.
As the only true Commercial Property Loan Insurance (CPLI) provider in the industry, LGIS Group’s bank customers realize significant ROI tied to:
LGIS Group has a deep understanding of the commercial real estate industry and what is required to make a project successful. Its patented CPLI program was purpose-built by established commercial real estate developers and investors based on decades of proven, first-hand experience within the industry. LGIS Group’s team has more than 250 years of collective insurance, commercial real estate and transactional experience. LGIS Group has a patented process that is backed by an investment-grade rated insurance policy.
David Eichenblatt is the owner of LGIS Group (LGIS), the pioneer of Commercial Property Loan Insurance (CPLI) for the CRE lending industry. He founded the company and created its innovative product to provide a solution to a problem he identified over the course of his nearly 30 year career as a real estate investor and developer.
He is also the principal at David Eichenblatt and Company, Real Estate Investments and Development, a firm he founded in 1992. Previous to that he founded the DECK Realty Group and served as an Investment Officer for TMW Real Estate Group (now Prudential) and CB Commercial Real Estate (now CBRE).
Eichenblatt is a graduate of the Owner/President Management Program from Harvard Business School and earned his MBA in Finance from Georgia State University along with a BS in Finance and Multinational from Florida State University. He holds the professional designation of CCIM and a number of insurance and real estate licenses.
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