Process
LOAN QUALIFICATION PROCESS
1
SOURCE TRANSACTION
COMMUNE ABLP partners with co-lenders and its network of real estate professionals to source pre-qualified transactions.
2
Asset Due Diligence
• Independent appraisal
• Site and area visits
• Comprehensive title search
• Third-party broker opinions of Value
• Cash flow analysis and sales comparables
3
Borrower Due Diligence
• Credit check
• Personal income review
• Identify personal assets and secondary collateral
4
Loan Origination
• Counsel prepares loan documents
• First Trust Deeds on primary collateral
• Assignment of rents & pre-pay penalties
• Personal guarantees and secondary collateral
EXPLANATIONS
Why Commune ABLP versus making direct individual loans?
1
Professional Resources
Professional underwriting & management.
2
Reduced Risk
Low LTV and class A structure allows for further risk reduction.
3
Low Minimum Investment
$100,000 for diversified portfolio of loans vs $1 million+ for a typical loan.
3
Diversification
By diversifying the portfolio of loans, we reduce investment risks.
WHAT MAKES COMMUNE ABLP DIFFERENT
1
Transparency
We provide our investors with monthly correspondence which details the partnership’s activities.
2
Stewardship
We serve the best interests of our clients.
3
Capital Structure
COMMUNE ABLP’s capital structure allows investors to pick their target risk/return.