“Now we are routinely seeing borrowers with equity of 60% or more who still can't
qualify for traditional bank financing because of credit or income issues.”
Jeffrey Long, President of the California Mortgage Association
Our selective property selection techniques and disciplined underwriting methods are attractive to the small or large private equity investor who is interested in taking advantage of “solid and well researched” real estate investment opportunities. It is a good time for growth and we are well prepared for it.
On behalf of our investors, we have placed millions of dollars, which is by no means small, but it doesn’t even begin to address the enormous needs of the present lending condition in this marketplace. We are seeing daily opportunities with beautiful prime California real estate that are almost too good to be true and are offering a select few investors the opportunity to participate with us in our growth .
Our due diligence and underwriting philosophy begins with “Where do we choose to invest?” and more importantly, “Where do we choose NOT to invest?” (on behalf of the Investor). Based on the market, here are some observations.
California market -- because we know this market and because it generally has a more diversified economy to absorb down cycles better.
The demand for coastal properties is high. Simple research can show significant drops in value have occurred inRiverside, Moreno Valley, Corona, and San Bernardino, among others counties without a doubt.
Knowing where to invest is crucial. GLMI manages risk by investing in "investor-friendly" zip codes. In pointed, well developed research, GLMI shows that in down markets, coastal property values drop less, and in up markets, rise sooner.
As for the current market, as of March 2008, (DIS) real estate reporting statistics show modest increases in coastal zip codes, including parts of
The coastal environment has attracted wealth and a multitude of good borrowers with the ability to repay. The market size is large. We are covering the borrower market along the coast from
Borrower’s Capacity and Character
Now that we have determined the "Where", we next look to the "Who".
Capacity – the Borrower’s ability to repay. We require documentation, and review the Borrower’s income, employment, assets, liabilities and tax returns as needed, to qualify the borrower as an appropriate risk for our business model.
Character – the Borrower’s track record. The borrower's character and desire to pay are based on past performance in handling credit. Our target niche is borrowers with FICO scores ranging from 600 to 715. We see good quality borrowers who are no longer afforded the opportunity to receive bank financing. Many borrowers in this range fall outside the stricter underwriting guidelines imposed by the banks, yet they are very stable borrowers.
Then, we turn to the subject property as collateral and ask the question “If they don’t pay, are we okay?”
It can generally be said that since the
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