Loans provided by the fund typically involve residential construction lending, fix n’ flip rehabilitation projects or land for residential construction.

• Banks are hindered by new regulation or are too risk-averse to keep up with borrower demand
• The CCM Lending Fund can offer greater flexibility – including time, income valuation, loan-to-value ratio, property condition, credit score evaluation
• There is a strong demand for housing, low inventory of homes and developed land
• Demand is boosting prices and fueling construction trends
• Lending gap between volume of building demand and available credit

Keys To Success: Borrower Perspective

Speed: Ability to respond to borrower inquiries same-day and make preliminary loan decision (contingent on verification of key data) within 24 hours

Creativity: Willingness to work through unique problems with borrower rather than rejecting a loan that doesn’t perfectly fit rigid parameters.

Business Approach:

• Give the borrower credit for income and assets that banks will disregard 
• Consider project value “as complete” (once rehab or construction is done) in addition to current “as-is” value.
• Credit score – Accept imperfect credit score if borrower can pre-pay interest or has sufficient collateral that can be used as additional security for loan.

Key Underwriting Criteria for Borrowers

• Borrowers must have knowledge and experience in asset class
• Credit rating and clean background check
• Financial strength of personal guarantors
• Well-defined short-term exit strategy

Key Underwriting Criteria for Collateral

• Proper seniority in collateral and ratings
• Clear budgets for rehab or construction
• Asset valuation – 3rd party valuations and/or appraisals
• Regular site inspections