What is the level of exposure (i.e. loan to value ratio)?
Our weighted average loan to value (LTV) ratios on our portfolio are under 54% of the value of the property (this figure will vary per individual loan). Generally, we do not exceed 70% of the value of a piece of property. The actual percentage on a given deal will depend on a variety of factors including, but not limited to, the condition and location of the property, its’ marketability, the income it generates, the borrowers’ credit, the purpose of the loan, and other factors. The actual loan to value will always be disclosed in advance to the investor. The value of the property will be determined either by an independent appraisal or the county tax assessed market value.
