Next: See how thoroughly these deals are documented.
All Florida
Our service area is all 67 counties of Florida. For investors in multiple deals with us, this gives you much better diversification than investing in larger mortgage loans.
Low LTV
One of the first things we check is the valuation. For our first valuation, we take the average of the county appraiser’s market value and current Automated Valuation Models (AVMs). Because counties tend to undervalue and AVM’s tend to overvalue, the blended average is usually close enough for the low LTV range we deal with. After we get the walk‑through videos and the 4‑point inspections we reevaluate, if necessary.
Our target zone is 20-30% LTV.
Flood Zone Check
Florida has a lot of low‑lying property. Some is especially vulnerable to flooding. We don’t want those.
Roof Inspection
The roof is the most important point of the 4‑point inspection. It needs to last the 10-year life of the loan, even if it may need some repairs. If it does need repairs, we’ll make sure that gets done.
Land Value
Although the likelihood is small, total catastrophes happen. We make sure the land value is sufficient to cover the loan balance.
Condo Screening
Condos on individual lots are usually fine, even if they share common walls with other units. Condos in stacked units without clear and unique land rights usually won’t have equity to cover the loan in total catastrophes.
Property Mix
In round numbers, expect 75% manufactured homes, 20% single family residences, and 5% condos. All manufactured homes are titled and taxed as real estate and permanently affixed to land owned outright by the borrowers, and the mortgage also secures the land.
Full Recourse
We’re ultimately on the hook if things go bad, therefore we want to be sure there’s enough property value to cover the loan, even after a major catastrophe.