Lender Spotlight: Mutual of Omaha

We are pleased to present Mutual of Omaha as one of the newest lenders on our PSRS platform!

Recently, we sat down with Tim Ulbrich, Investment Officer at Mutual of Omaha, for a quick Q&A on where they are winning deals.

Where is Mutual of Omaha winning deals?

“We are not going to compete with some of our life company peers on pricing, so we try to differentiate in other ways. The deals we tend to win have a story and we try to get comfortable with our basis in the loan, and in the real estate. We try to meet the borrower’s business plan making use of both our flexible prepay and amortization terms. Repeat business is what we are seeking, so facilitating borrowers’ business plans is a priority. Primary differentiating factors include our flexibility in terms of the way we think through a deal and the way we can structure a loan.”

Where will Mutual of Omaha not compete?

“Typically, Mutual of Omaha will not compete on brand-new developments because rents will be at the top of the market in order for a borrower to pay for the construction cost. We do not like high rents that are untested/unproven and therefore prefer to work with second generation rents where we are going to get older collateral. We are not cap rate driven, we are debt yield driven. Low leverage (30-40% leverage) deals are not in our range because we will only go down to a 145 spread.”

Mutual of Omaha by the Numbers 2017