A.J.T.M. Financial Group, Inc.- Principles
A.J.T.M. Financial Group helps Investors achieve their goals by creating opportunities to participate in Commercial Real Estate lending secured by real estate collateral. AJTM commits to manage and control risk through its stringent lending criteria, professional underwriting evaluation, detailed closing process and continued monitoring. We are committed to ensure that our investors experience the convenience, communication, professionalism and efficiency that build confidence and peace of mind.
The A.J.T.M. Financial Group lending program for investors is guided by our core principles:
1. In today's investing environment, it is more important than ever for individuals to have multiple options and complete control of their finances. AJTM clients are presented with a diverse set of projects that offer you the opportunity to lend your capital based on your preferences for location, collateral, term, and yield. You will have access to a comprehensive package of due diligence materials for review prior to closing. Our clients maintain control of their capital at all times. A reputable title company or closing attorney administers loan closings, and a nationally licensed; third party loan-servicing agent services the loans, receives interest payments from the borrower and promptly distributes your portion directly to your bank account. AJTM does not touch your funds.
2. A robust network of AJTM clients and our innovative loan structure allows for a limited number of investors to participate in a single project. Clients can determine their level of participation in each loan, and deploy their capital in multiple loans to create a diversified portfolio. As a co-lender on a particular project, you will "own" your proportional share of the income stream as well as a first trust deed or mortgage that protects your collateral. Through combining your resources with other successful investors, you are able to participate in lending opportunities that would otherwise be inaccessible.
3. A.J.T.M. Financial Group maintains stringent lending guidelines, conducts rigorous due diligence on every project and seeks to structure the loan to provide strong protection for the lenders. In each lending opportunity, AJTM makes all due diligence available to each AJTM client for complete review prior to closing. These will include such items as appraisal, title report, borrower credit, borrower background check, business and personal financials, current rent rolls, photographs and leases etc.
4. Our clients have concluded that the typical higher yields earned on AJTM-administered loans provide more than adequate compensation for the inherent risks and illiquidity incurred in private commercial bridge lending. It is important to note that AJTM loans require borrowers to make monthly interest payments, with the loan principal paid at maturity. When the loan matures, AJTM’s robust pipeline enables clients to redeploy capital with minimal delay in order to maintain high returns.
Why do our investors find commercial private lending attractive?
Higher yield, quality assets and lower duration risk are some of chief benefits of commercial private lending. Institutional demand for the loan asset class remains strong due to its five main characteristics: seniority in the capital structure, security with collateral backing, floating-rate coupon, short duration, and low correlation to other asset classes. The loan asset class is attractive relative to other fixed-income options, in terms of price and valuation, and it has proven itself through multiple credit cycles.
Is commercial real estate bridge lending risky?
All alternative investment strategies entail risk. However, AJTM has developed a defined platform to manage risk in this asset class through shrewd lending guidelines, rigorous loan evaluation, underwriting processes and diligent monitoring. Many investors conclude that the generous return opportunities available through prudent private lending are commensurate with the associated risks.
How does A.J.T.M. Financial Group, manage risk?
A.J.T.M. Financial Group has developed lending guidelines that are employed rigorously on ALL transactions or potential projects. The primary source for repayment of AJTM-underwritten loans is normally a conventional or bank refinance. Therefore, underwriting for an AJTM bridge loan needs to be in line with bank underwriting standards and include criteria other than property valuations. A.J.T.M. Financial Group employs the following key guidelines on each transaction:
Basic Guidelines Mitigates Risk
Max Loan-To-Value: 75% ✔ Each property has a minimum 25% verified equity as a margin of safety.
Max Loan Term: 36 months ✔ 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 2nd 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% ✔ Ensures adequate investor compensation
Interest Payment: Monthly ✔ Provides consistent cash flow to investors
Collateral Insurance: Adequate hazard
insurance with AJTM investors as loss-payee ✔ Provides investor coverage in the event of catastrophic weather, fire or flood, vandalism etc.
Loan Servicing: AJTM employs nationally licensed third-party loan servicer to collect borrower payments and disburse promptly and directly to investor bank accounts.
The A.J.T.M. Financial Group lending program for investors is guided by our core principles:
1. In today's investing environment, it is more important than ever for individuals to have multiple options and complete control of their finances. AJTM clients are presented with a diverse set of projects that offer you the opportunity to lend your capital based on your preferences for location, collateral, term, and yield. You will have access to a comprehensive package of due diligence materials for review prior to closing. Our clients maintain control of their capital at all times. A reputable title company or closing attorney administers loan closings, and a nationally licensed; third party loan-servicing agent services the loans, receives interest payments from the borrower and promptly distributes your portion directly to your bank account. AJTM does not touch your funds.
2. A robust network of AJTM clients and our innovative loan structure allows for a limited number of investors to participate in a single project. Clients can determine their level of participation in each loan, and deploy their capital in multiple loans to create a diversified portfolio. As a co-lender on a particular project, you will "own" your proportional share of the income stream as well as a first trust deed or mortgage that protects your collateral. Through combining your resources with other successful investors, you are able to participate in lending opportunities that would otherwise be inaccessible.
3. A.J.T.M. Financial Group maintains stringent lending guidelines, conducts rigorous due diligence on every project and seeks to structure the loan to provide strong protection for the lenders. In each lending opportunity, AJTM makes all due diligence available to each AJTM client for complete review prior to closing. These will include such items as appraisal, title report, borrower credit, borrower background check, business and personal financials, current rent rolls, photographs and leases etc.
4. Our clients have concluded that the typical higher yields earned on AJTM-administered loans provide more than adequate compensation for the inherent risks and illiquidity incurred in private commercial bridge lending. It is important to note that AJTM loans require borrowers to make monthly interest payments, with the loan principal paid at maturity. When the loan matures, AJTM’s robust pipeline enables clients to redeploy capital with minimal delay in order to maintain high returns.
Why do our investors find commercial private lending attractive?
Higher yield, quality assets and lower duration risk are some of chief benefits of commercial private lending. Institutional demand for the loan asset class remains strong due to its five main characteristics: seniority in the capital structure, security with collateral backing, floating-rate coupon, short duration, and low correlation to other asset classes. The loan asset class is attractive relative to other fixed-income options, in terms of price and valuation, and it has proven itself through multiple credit cycles.
Is commercial real estate bridge lending risky?
All alternative investment strategies entail risk. However, AJTM has developed a defined platform to manage risk in this asset class through shrewd lending guidelines, rigorous loan evaluation, underwriting processes and diligent monitoring. Many investors conclude that the generous return opportunities available through prudent private lending are commensurate with the associated risks.
How does A.J.T.M. Financial Group, manage risk?
A.J.T.M. Financial Group has developed lending guidelines that are employed rigorously on ALL transactions or potential projects. The primary source for repayment of AJTM-underwritten loans is normally a conventional or bank refinance. Therefore, underwriting for an AJTM bridge loan needs to be in line with bank underwriting standards and include criteria other than property valuations. A.J.T.M. Financial Group employs the following key guidelines on each transaction:
Basic Guidelines Mitigates Risk
Max Loan-To-Value: 75% ✔ Each property has a minimum 25% verified equity as a margin of safety.
Max Loan Term: 36 months ✔ 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 2nd 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% ✔ Ensures adequate investor compensation
Interest Payment: Monthly ✔ Provides consistent cash flow to investors
Collateral Insurance: Adequate hazard
insurance with AJTM investors as loss-payee ✔ Provides investor coverage in the event of catastrophic weather, fire or flood, vandalism etc.
Loan Servicing: AJTM employs nationally licensed third-party loan servicer to collect borrower payments and disburse promptly and directly to investor bank accounts.