01
Property
What are we lending against today?
We start with the location, current condition, asset quality, liquidity, and comparable sales. We value the property as it stands today and consider what it may be worth later.
Underwriting
How we underwrite a loan.
We review the property, basis, equity, sponsor, construction plan, exit, and downside.
Our review
What we look at.
A principal reviews each part of the deal. That person structures the loan and gives you the answer.
02
Basis
What is the sponsor’s true investment?
We review the purchase price, acquisition date, and any capital invested since closing. That tells us what you have in the property and how the current capital structure developed.
03
Equity
How is the sponsor aligned?
We look at your cash investment, existing debt, and the capital that stays at risk with ours. Your equity affects the loan structure.
04
Sponsor
Who is executing the plan?
We review your experience, liquidity, track record, and familiarity with the property and plan. We evaluate you and the property together.
05
Construction
What does completion require?
For development loans, we review current value, land basis, work completed, remaining budget, contingency, approvals, draws, timing, and completed value.
06
Exit
How does the loan get repaid?
Repayment may come from a sale, refinance, completion and stabilization, or long term financing. We need to believe that path before we make the loan.
07
Downside
What happens if the original plan does not work?
We ask what protects the loan if the schedule slips, costs rise, or the expected exit changes. The answer affects leverage, structure, and whether we make the loan.
Declined loans
Why we decline a loan.
If a deal doesn’t work for us, we’ll explain the issue. Then you’ll have an answer and can decide what to do next.
- Sponsor equity is insufficient for the requested structure.
- The basis does not support the requested leverage.
- Completed value depends on assumptions we cannot support.
- The construction budget or contingency is inadequate.
- Sponsor experience does not match the project’s complexity.
- Title, tax, environmental, or legal issues create unacceptable risk.
- The proposed exit is not credible.
- The downside does not provide sufficient protection.
“A fast no is more valuable than a slow maybe.”
Send us the facts
Tell us about the loan.
Send the property, requested amount, timing, sponsor, and exit. A Matchpoint principal will review it.