Your position in the capital stack is more important than ever
Investors looking for more certainty in uncertain times, RentFlow can be a good fit.
One of the most important concepts for investors to use when evaluating risks associated with their real estate investments, is to identify where they sit in the underlying financial structure should things go wrong. Where are they positioned in the capital stack and how secure is their investment?
Most secure position is Senior debt
The most secure position in the capital stack is senior debt. This is because the asset being financed by the loan serves as security for senior debt. Until the amount is settled, the lender will put a lien on the property (plus interest). Any investor making an investment where third-party bank financing is also involved (no matter how big or small the LTV), puts their money at more risk than the bank because the bank will always be given precedence over investors. The bank will maximise what is due to it before anything is distributed to the junior debt providers.
RentFlow Investors are always positioned as Senior Debt - No.1 in the Capital Stack.
To protect investors capital, RentFlow only secures their funds against the hard assets as Senior debt. This means investors hold the most secure position in the capital stack with 1st legal charge over the properties similar to how a bank would secure a mortgage.
Investors seek out certainty in uncertain times.
This is what we provide – A Fixed Monthly Passive Income stream for investors in times of uncertainty.
There is a lot of commentary in the market about the potential impact of interest rate increases on the property market. The general consensus is that "Rental income investments" will remain very strong, if not stronger, in 2023 as fewer first-time buyers will be able to enter the buyer's market due to the increase in mortgage costs and will instead continue to rent, maintaining a high demand on an already stressed rental market and ensuring that rental income remains assured.
The Economic and Social Institute of Ireland (ESRI) recently announced that they expect property prices to continue to increase in 2023 but they expect the level of growth to slow down.
Analysts’ agree that it would likely take something more than rising interest rates for a price crash due to the following key points:
Extremely low rates of unemployment and strong price-to-income and price-to-rent ratios
The percentage of distressed borrowers in Ireland would rise to just 2% compared to 13% in the UK, preventing any significant levels of distressed sales from entering the market, according to a downside scenario analysis from Moody's that assumes high single-digit inflation through 2023 across markets and a more aggressive rise in interest rates.
The Central Bank’s very tight lending rules for the last 10 years means that borrowers are much better-placed to withstand shocks compared to 2008.
Global market sentiment can put a squeeze on new-homes development in an already very under supplied market meaning that Multi family Homes will be in greater demand than ever.
RentFlow 5 for 5
We specialise in pure income investments and through our RentFlow 5 for 5 product, we offer investors a low-risk and hassle-free way to earn passive income from the Dublin rental market.
Interested in earning passive monthly income?
RentFlow Series 1 was fully subscribed earlier this year and now our Series 2 portfolio is now OPEN for investors.
• 5% p.a payable for 5 years
• 1st legal charge
• Fixed monthly payments
• Suitable for Private, Pensions & Corporates
Ready to start earning?
Call, email or come in for a personal consultation, we’d love to meet you.
T: +353 (0) 1 961 9413
A: The Masonry Building, 151-156 Thomas St., Dublin 8, Ireland