Evoque Lending’s private lending formula and philosophy is to originate well underwritten and well secured quality real estate loans while taking advantage of the flexibility afforded through private money lending. Our investment philosophy when evaluating and underwriting a potential loan opportunity takes the following questions into consideration:
“Can the client pay?”
“Will the client pay?”
“If the client doesn’t pay, are we OK?”
1) “Can the client pay?” Does the borrower have the ability to make the monthly payments for the loan we are funding? What are the details regarding the borrower’s income, job position, stability, overall financial standing, including: assets, liabilities, and net worth. To verify borrowers’ capacity to pay, Evoque Lending requires that the borrowers state their income on the loan application. In many cases we include tax returns, bank statements and verification of cash deposits or other assets.
2) “Will the client pay?” Often times, borrowers show they have the ability to pay; however that doesn’t always mean they will pay. The borrowers’ character and desire to pay are based on their past performance in handling credit. Evoque Lending runs a complete credit report providing payment history on existing loans including the number of late payments and credit references to verify the borrowers’ character and desire to pay.
3) “If the client doesn’t pay, are we OK?” This is the MOST IMPORTANT criteria of our underwriting guideline! The collateral is the backbone and security of all of our loans. Evoque Lending is a direct equity lender. The market value of the property is critical in Evoque Lending’s decision in making any given loan. Our policy is to lend only up to 60% Loan To Value (LTV), requiring at least 40% protective equity in the property. To verify the market value of a property, Evoque Lending requires an appraisal to be completed by an approved independent appraiser. We tailor each loan to meet our investors’ criteria before we send the deal to be reviewed. After we do our due diligence, we present our investors with the details of the loan and an appraisal of the property. Even though we provide financing for every type of property in the market place, our investors have the option to choose what properties they would like to invest in so you will only see deals which meet your specific criteria. We only accept a small fraction of the deals that come to us so when the deal is presented to our investors it will carry with it the highest standards.