In this episode of Tuesday Tips, we were joined by Maddie, VP of Real Estate Acquisitions at Grow Schools, to discuss strategic financing options for school facilities.
Here are this session’s top 3 tips:
Prepare thoroughly before approaching lenders. Schools should gather all financial documentation (including three years of audited financials, current loan agreements, projected budgets, and enrollment trends), engage multiple lenders to compare options, and consider working with a financial advisor to navigate the process effectively.
Watch for key refinancing indicators. Schools should consider refinancing when interest rates drop below their current loan rate, when their financial standing and credit have improved, or when facing an upcoming balloon payment or cash flow concerns related to debt obligations.
Understand the potential financial benefits. Refinancing can reduce monthly debt service payments through lower interest rates, extend loan terms to create more manageable payments, and provide access to additional equity for capital improvements by tapping into appreciated property value.
