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Due Diligence

Preliminary Screening

Following submission of a proposed transaction, we provide a quick response on whether the deal meets our investment criteria. A borrower’s application is judged on factors such as the size of loan requested, type of property, location, loan to cost ratio, and borrower experience. Our extensive network of relationships throughout the United States provides Edgewood Capital with the ability to quickly assess and understand property markets and evaluate business plans for new transactions.

On-Site Due Diligence

Once a term sheet is signed, a senior member of our team will meet with the borrower and conduct a thorough site visit. We analyze the local market and business plan for the property to determine their economic benefits. Edgewood Capital also performs a thorough property inspection and meet with local brokers to tour comparable and competitive properties in the neighborhood.

Detailed Underwriting

Each investment is subject to rigorous analysis with an emphasis on property and market fundamentals. Our thorough underwriting process includes financial and sensitivity analyses, market analysis, and a comprehensive borrower assessment as well as a review of legal, financial and third-party documentation.

Property Financial Market Legal Borrower
         
General Info Rent Roll Overview Purchase & Sale Experience
Floor & Unit Plans Operating Statements Local Reports Organization Chart Principal Bios
Third Party Reports- Appraisal, Enviro, Inspection Stabilized ProForma / Cash Flows Comparables (Rent, Sales) Ownership Docs & Operating Agreements Financials (Entity, Personal)
Survey Sources & Uses Demographics Loan Documents Tax Returns
Photographs Capital Budget Maps Title Report Credit Report

Approving the Deal

An investment memorandum is prepared by Edgewood Capital Advisors and presented to the Investment Committee for approval. The deal team responds to any concerns or issues raised by the investment committee. If necessary, the deal team will do additional due diligence to satisfy any concerns. Once approved, we work diligently towards final funding and closing.

Closing the Deal

Edgewood works with experienced law firms who specialize in the area of commercial lending and real estate closings for institutional clients.

Servicing and Asset Management

Closing the deal is not the end of the relationship. We service all of our loans in-house and maintain close communication with all of our borrowers to actively manage our loans throughout the loan term. We work closely with our borrowers to address any borrower and/or asset related issues as they arise throughout the term. Through experience we have learned that by staying in close contact with our borrowers we can help them achieve their goals and provide strong returns for our investors.