Lending Program for Investors | A.J.T.M. Financial Group, Inc.

A.J.T.M. Financial Group, Inc. is dedicated to helping investors achieve their goals by providing unique opportunities to participate in commercial real estate lending that are secured by real estate collateral. Our commitment to managing and controlling risk is evident in our stringent lending criteria, professional underwriting evaluation, detailed closing process, and continued monitoring. By doing so, we ensure that every investor experiences the convenience, communication, professionalism, and efficiency of working with us.

Lending Program for Investors

Core Program Principles

1. Flexibility and Control

In today's investing environment, having multiple options and complete control of finances is crucial. That is why we present our investor partners with a diverse set of projects that offer them the opportunity to lend their capital based on their preferences for location, collateral, term, and yield. Our investor partners will have access to a comprehensive package of due diligence materials for review before closing, ensuring informed decision-making. 

Investor partners also maintain control of their capital at all times. A reputable title company or closing attorney administers loan closings. Then, a nationally licensed third-party loan servicer services the loans, receives interest payments from the borrower, and promptly distributes the investor partner's portion directly to their bank account. A.J.T.M. Financial Group, Inc. does not touch our investor partners' funds at any point in the process. 

2. Structure and Accessibility

A robust network of clients and our innovative loan structure allow for a limited number of investors to participate in a single project. Investor partners can determine their level of participation in each loan and deploy capital across multiple loans to build a diversified portfolio. As a co-lender on a particular project, the investor partner will "own" their proportional share of the income stream as well as a first trust deed or mortgage that protects their collateral. By combining their resources with those of other successful investors, they can participate in lending opportunities that would otherwise be inaccessible.

3. Due Diligence

A.J.T.M. Financial Group, Inc. maintains stringent commercial private lending guidelines, conducts rigorous due diligence on every project, and seeks to structure the loan to provide strong protection for the lenders. For each lending opportunity, we make all due diligence items, such as appraisals, title reports, borrower credit, borrower background checks, business and personal financials, current rent rolls, photographs, and leases, available to the investor partner for complete review before closing.

4. Proven Returns Over Inherent Risks

Our investor clients have concluded that the typical higher yields earned on our administered loans provide ample compensation for the inherent risks and illiquidity associated with private commercial bridge lending. It is important to note that our loans require borrowers to make monthly interest payments, with the loan principal paid at maturity. When the loan matures, our robust pipeline enables investor partners to redeploy their capital with minimal delay to maintain high returns.

Why Choose Commercial Private Lending

Investors are drawn to commercial private lending due to its attractive higher yield, quality assets, and lower duration risk. It remains in high demand due to key characteristics like seniority in the capital structure, secure collateral backing, floating-rate coupons, short duration, and low correlation to other asset classes. Compared to other fixed-income options, commercial private lending offers compelling price, valuation, and stability across multiple credit cycles.

While all alternative investment strategies carry risk, A.J.T.M. Financial Group, Inc. utilizes a well-defined platform to manage these risks within commercial real estate bridge lending. Through our precise lending guidelines, meticulous loan evaluation, underwriting procedures, and diligent monitoring, we transform potential risks into opportunities. The return potential available through well-considered private lending is often viewed by investors as proportionate to the risks involved.

Understanding Commercial Real Estate Bridge Lending

How A.J.T.M. Financial Group, Inc. Manages Investment Risk

Key Guidelines on Each Transaction

Each property has a minimum 25% verified equity as a margin of safety.

Maximum Loan-To-Value (LTV) Ratio: 75%

Maximum Loan Term: 36 months

A 36-month maximum loan term minimizes the time invested capital is exposed to potentially changing market conditions, primarily the financial health of the borrowing entity and the value of loan collateral.

Lien Position: First Lien Only, No Second Liens

First lien has to be guaranteed through appropriate title insurance and accompanying title commitment with a national title underwriter.

Interest Rate: 7.49%-10%

A 7.49% to 10% interest rate ensures adequate investor compensation.

Interest Payment: Monthly

A monthly interest payment setup provides consistent cash flow to investors.

Collateral Insurance: Adequate Hazard Insurance with the Investor As Loss-Payee

Collateral insurance provides investor coverage in the event of catastrophic weather, fire, flood, vandalism, etc.

Loan Servicing: Nationally Licensed Third-Party Loan Servicer

We employ a nationally licensed third-party loan servicer to collect borrower payments and disburse them promptly and directly to investor bank accounts.

We employ rigorous lending guidelines on every transaction and potential project. The primary source for repayment of our underwritten loans is normally a conventional or bank refinance. Therefore, underwriting for a bridge loan with us needs to be in line with bank underwriting standards and include criteria other than property valuations. Our comprehensive approach ensures your investments are well-protected and strategically positioned for success.

Connect with A.J.T.M. Financial Group, Inc.

For additional information about our lending programs for investors, feel free to reach out to us today. We would be more than happy to answer any questions you may have.