The How
Investment Thesis
"Risk comes from not knowing what you are doing" - Charlie Munger
1st Position Liens
The World economy circles around 1st Position Liens as its basis of Value. Commercial Mortgage Backed Securities are one of the most common investment vehicles on Wall St., vast majority of them being 1st Position Liens on Real Estate.
We undestand this intimately and deeply value the protection that is provided by it.
Low Leverage
We require all of our Investments to contain a minimum of 30% Equity for existing property, 50% for Land. This allows us substantial market insulation to provide confidence first for ourselves, and Ultimately our Investors.
We look for the downsides in every deal and find a reliable solution proactively. One solution from offering low LTV loans allows our Borrowers a better chance to Refinance later, further insulating our Capital.
Borrowers
We are investing in Real Estate owned by Operators who are further improving their communities by Adding Value to properties. By virtue of this, we are adding Value to ourselves as those property values higher in the future benefit us all.
Commercial Purpose
By only lending on Commercial properties (held in an LLC) we limit our exposure in the rare event of Default.