We make commercial and business purpose loans secured with real property. Examples include a person buying an office building or apartment complex, or a fix and flip single family residence, or even a cash-out refinance to fund an expanding business.
The borrower needs to have the opportunity to make money with the funding of our loan. The loan needs to be secured with real estate that has a significant equity hedge. If those two criteria are met, then a good loan has been made.
All loans are secured with real estate so there is a path to recover our principal investment in the event the borrower stops paying. We use a third party trustee to facilitate any defaults or foreclosures. Historically, we have recovered all of the funds owed from a borrower. We have never taken a loss on investor capital.