Real Estate Investment Criteria and Markets
  1. Location Central Midwest
    Property Type Non-Owner Occupied commercial and residential real estate
    Property Value Market value of $100K to $2M
    Borrower Equity/Capital Structure 70/30%
    Typical LTV 60%-80%
    Interest Rate Target 10 – 12%
    Up-Front Point Target 3 - 5
    Other 6 months in reserves held by Medford
    Medford leverages real estate experience and uses a disciplined approach to determine the types of properties against which to write loans.

  2. General investment targets that the Fund will pursue:

    • Primarily focus on the central Midwest – northeastern Illinois, southeastern Wisconsin, northwestern Indiana, southwestern Michigan.

    • Primarily non-owner occupied commercial and residential real estate.

    • Focus on market value of $100K to $1M.

    • Primarily offer first mortgage loans, occasionally second mortgage loans.

    • Target a conservative capital structure typically offering 70% first mortgage financing and requiring approximately 30% borrower equity.

    • Offer loans with standard interest rates between 10% and 12% and an origination fee 3 to 5 points; custom agreements may also be crafted depending on property specifics and borrower profiles

    • Other Terms – Require borrowers to deposit six months of interest plus principal payments, real estate taxes and insurance in separate reserve accounts held by Medford.