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The Underwriting Process

Real Estate equity is the cornerstone of every loan we make. Although we analyze many facets of our borrowers’ ability to repay, the underlying collateral ultimately determines our lending decision.

To assess collateral value, we scrutinize appraisals, consult with local real estate professionals, study property demographics, and make physical site visits. Our evaluation assumes that property values may decrease well before they increase which forces us to consider the long-term viability of each and every property. Thus, GreenSpring Capital will not originate any loan on a property it is not willing to own and operate.

Once a loan request has been submitted, GreenSpring Capital undergoes a comprehensive four step process to determine if a loan will be approved.

Our underwriting calculates a best and worst case scenario for each loan we consider. Once the loan has passed the initial underwriting criteria we ask:

  • Q: Is this a property we would want to own and operate?
  • Q: Should a foreclosure occur, is our investment capital secure?

 

If we can answer yes to both questions, we can proceed with the underwriting