Our Vetting Process
We utilize the 4 C’s as part of our underwriting process before lending
Capacity
All applicants must provide a resume of past real estate experience along with references. Additionally, we will require a list of all active projects to ensure adequate operational capacity.
Capital
We verify that the loanee/partnership has a net worth equal too or greater than the value of the asset. We also verify that the loanee/partnership has enough liquidity to cover one years worth of payments.
Character
We conduct due diligence by thoroughly vetting each operator we lend to. This process may include background checks, credit worthiness, and perform our own thorough underwriting of the project to ensure alignment with our risk profile and goals.
Collateral
We utilize the property itself and other tangible assets as collateral against the loan.
Market Overview
Diversification of Assets
We invest in a wide range of real estate assets across multiple markets. This diversification reduces the impact of any single loss.
Risk Management
We utilize sophisticated risk management systems that assess the creditworthiness of borrowers, evaluate the risks of various investments, and hedge against potential losses.
Collateral
We utilize the property itself as collateral against the loan or other tangible assets that can be recovered in the event of a default.
Interest Rate Margins
The fund makes money by utilizing investor money and lending at higher yet competitive interest rates to borrowers. This ensures steady profitability over the course of the fund.
What are the benefits to hard money lending?
Hard money lending offers distinct advantages for real estate investors seeking flexibility, speed, and access to capital. Whether you’re flipping houses, bridging financial gaps, or tackling time-sensitive deals, this financing option provides avenues to capital.
