When underwriting a loan, the primary focus of our analysis is the intrinsic value of a property, which is determined by considering a number of factors including, without limitation, location, potential for alternative use, current and potential net operating income and local demographics.  We also examine the credit worthiness of a borrower or its principles and take into consideration its or their ability to meet the operational needs of the property and the experience of the borrower or its principals in the real estate industry.  Because of our emphasis on fundamental property value, we believe that in the event of default, foreclosure and acquisition of title to a property, we will generally be able to liquidate the property favorability and quickly.

We originate mortgage loans in a number of ways.  We rely on the relationships developed by our officers with loan originators, real estate investors, commercial real estate brokers, mortgage brokers and bankers.

Loan approvals are based on a review of property information as well as other due diligence activities undertaken by us, including a site visit to the property, an in-house property valuation, a review of the results of operations of the property (if any) or, in a case of an acquisition by our borrower, a review of the borrower's projected results of operations for the property, and a review of the financial condition of the prospective borrower and its principles.  If management determines that an environmental assessment of the underlying property is necessary, then such an assessment is conducted by a third-party.  Final loan approval is generally quickly issued after the appraisal is received on the property.  We generally obtain a small non-refundable cash payment allocable for legal and other expenses from a prospective borrower at the time of issuing a final commitment.  Our loan commitments are subject to an appraisal and clear title to the property.