Our exhaustive investment selection process and due diligence is designed to identify any current issues, as well as the potential future market conditions including future resale value and potential rental income.

Property And Market Selection

The process of purchasing notes requires a highly disciplined approach. Regardless of how “nice of a location” or how “cute that building looks”, we first must evaluate an acquisition based upon the economic potential rather than the emotional appeal. Someone once said “do the numbers and the numbers will tell you what to do”. This is a key process when purchasing any asset for repositioning, and must be employed before any other factors are considered.

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Our process for evaluation includes:

  • Identify target investment markets
  • Cultivate relationships with brokers and property managers in the market
  • Identify candidate properties
  • Screen all opportunities to identify targets that best match the investment objective
  • Evaluate each asset based on a thorough understanding of the property operations and cashflow potential
  • Thoroughly understand critical success factors
  • Identify multiple exit strategies
  • Confirm results with local real estate professionals
  • Negotiate the best possible terms and price
  • Execute a purchase contract with provisions for exit during the due diligence process
  • Actively manage due diligence and renegotiate the terms and/or price based upon results
  • Complete the acquisiton, manage the transition process, perform borrower outreach and loan modification and execute the defined exit strategy

This process ensures that we identify the most attractive investments to provide a maximum return to our investors.

Due Diligence

The due diligence process is perhaps one of the most important steps when acquiring a property. This involves a complete assessment of the physical, financial, and market condition of the property to determine its true viability for future growth in value and cashflow.
The following are key criteria from our due diligence process:

  • Evaluation of data and reports, including title work, tax projections, and compliance with city codes, easements, fees, etc.
  •  Detailed physical review of property including site access, nearby amenities, crime statistics, transportation access, local employment potential, and quality of life in the area.
  • Thorough review of all collateral files including the note, deed of trust, assignments, recorded documents, title insurance, unpaid taxes and liens.

Our exhaustive investment selection process and due diligence is designed to identify any current issues, as well as the potential future market conditions including future resale value and potential rental income.