Underwriting
Private lending is not simply about LTV. Every transaction tells a story, and every part of the capital structure matters.
How Matchpoint thinks
Our principals evaluate the property, sponsor, basis, equity, business plan, exit, and downside directly. That complete view lets us structure intelligently and give borrowers a clear answer.
01
What are we lending against today?
Location, current condition, asset quality, liquidity, and relevant comparable transactions establish the starting point. We underwrite the collateral as it exists now—not only the value it may reach later.
02
What is the sponsor’s true investment?
Purchase price, acquisition date, and additional capital invested provide context an appraisal alone cannot. Basis helps us understand the transaction’s history and current capital structure.
03
How is the sponsor aligned?
Meaningful sponsor capital creates alignment. We look at cash invested, existing debt, and the amount of capital that remains at risk alongside ours.
04
Who is executing the plan?
Experience, liquidity, track record, and familiarity with the asset and strategy matter. The sponsor and the property are evaluated together.
05
What does completion require?
For development transactions, we review current value, land basis, work completed, remaining budget, contingency, approvals, draw structure, timing, and completed value.
06
How does the loan get repaid?
A sale, refinance, completion and stabilization, or long-term institutional financing may provide the exit. The path needs to be credible before we enter the transaction.
07
What happens if the original plan does not work?
This question influences leverage, structure, and ultimately whether we make the loan. A sound transaction must make sense in the expected case and remain protected when circumstances change.
When we say no
Our reputation is worth more than any single transaction. If a deal does not work for us, we explain the issue and answer quickly.
“A fast no is more valuable than a slow maybe.”
Principal review
Share the property, requested loan, timing, sponsor, and exit. Your transaction goes directly to a Matchpoint principal.