- Medford treats every loan the same way a bank would underwrite a conventional mortgage
- Medford requires the following to complete due diligence:
- Review loan application with Borrower – This includes discussing their personal financial statements, current credit position, property exit strategy, real estate investing experience
- Perform deal analysis, review appraisal, and realtor valuation
- Obtain and review borrower information including: recent paystubs, prior 2 year tax returns – business and personal, prior 2 years W-2 statements/1099 statements, copy of all assets, and ID
- Perform a UCC tax lien search for borrower and PG
- Verify social security information and tax transcripts for last 2 years
- Obtain copies of contractor documents including: Blue prints, scope of work, Certificates of Insurance , Contracts
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Borrowers
- Once loan is funded, it is added to the tracking system and the administrative team monitors and reconciles the monthly loan payments
- On a monthly basis, borrowers receive an email detailing the monthly interest and insurance payment
- If payments are delinquent, a phone call and letter are initiated stating that the borrower is in default of the loan. The payment may be drawn from the reserves while Medford resolve the issue with the borrower. If the issue cannot be resolved, Legal is brought in to initiate foreclosure proceedings. YTD we have not had to initiate these extreme measures.
Fund Investors
- On a quarterly basis, we send out an investment return recap to all investors in the fund
- Medford's administrative team tracks and manages all monthly distributions to investors
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