We are a group of risk-averse lenders so our policies and criteria have been developed to protect both our borrowers and ourselves. Our goal is to make safe loans where all parties can generate adequate returns on investment.

We promise to…

• check every loan request against our underwriting criteria
• stick to our LTV limit as noted in our underwriting criteria
• receive & review an appraisal & preliminary title report (prelim) on all properties used as collateral before we loan money
• strictly limit our loans to Non owner-occupied (NOO) properties
• drive by the house (if possible) or get pictures from the appraisal
• use an appraiser and/or BPO Agent that is local to the property location, specifically one that knows the neighborhood well
• be in 1st or 2nd loan position and ALWAYS verify which position we’re in. If we’re going in 2nd position we must have copy of the 1st Note along with the latest payment stubs. We know the current balance of the 1st and terms, such as whether or not there are any prepayment penalties
• require a physical inspection of the property done at the borrower’s expense to verify the repair costs, if the property requires major rehab or if we sense that the property has potential structural problems
• require a qualifying co-signer that can and will co-sign to refinance at end of term if necessary, for any refinance exit strategy, if the borrower has a low credit score that won’t qualify for a refinance loan
• examine and cover the down side of any deal BEFORE we consider the upside no matter how enticing a borrower or project may appear
• maintain the highest ethical and moral standards for our private lending business
• strictly follow our own operating principles, and expect the same of others with whom we associate

Regarding the closing…

• We ask our attorney to prepare all documents. This allows us to comply with all laws and regulations.
• We have our attorney collect and distribute all funds; we NEVER accept funds personally
• We require lender’s title insurance
• We make sure the borrower carries adequate hazard insurance throughout the period of the loan, and we verify that we are on borrower’s hazard insurance policy as a mortgagee
• We make sure we have all signed disclosures for our records including closing statements

Our criteria for making safer loans requires that we…

• have and be guided by our Company Underwriting document
• have and be guided by our Company Risk Management document
• possess an understanding of how to appropriately and effectively work with all team members. Real estate investing is a team sport
• commit to professional-level continuing education in Private Lending
• consistently place more short term loans (1 year or less) than longer term loans in our portfolio
• consistently place several small loans across many projects as opposed to a small number of larger loans across fewer projects