Private underwriting,
sharpened by analysis.

• LTV of 60% or less: 17 to 20
• 60 to 70%: 14 to 16
• 70 to 75%: 10 to 13
• 75 to 80%: 6 to 9
• Above 80%, or no certified appraisal: 0 to 5

Certified appraisal, title report, land purchase deed

• Actual and stabilized DSCR above 1.25, or bank takeout covering the balance with margin: 12 to 15
• DSCR between 1.00 and 1.25: 8 to 11
• Actual DSCR below 1.00 but stabilized above: capped at 9
• Stabilized DSCR below 1.00, or takeout that does not cover the balance: capped at 6
• No financial statements and no personal balance sheet: capped at 4 (8 on a construction file, where the developer is judged on its sponsors)

Financial statements (two years), personal balance sheet, rent roll, interest budget

• Firm takeout letter or signed sales covering the balance: 12 to 15
• Credible exit supported by the market (comparables, refinancing capacity, 30 to 60% presales): 8 to 11
• Exit stated but unsupported: 4 to 7
• No realistic exit, or an exit entirely dependent on third parties without evidence: 0 to 3

Bank letter of interest, presales, signed leases, market study, release prices

• Proven experience (three comparable projects or ten years), clean credit, demonstrated liquidity: 12 to 15
• Solid but partial (one or two projects, liquidity undocumented): 8 to 11
• Limited experience or credit signals: 4 to 7
• No experience, arrears, unpaid taxes, litigation: 0 to 3

Track record, personal balance sheet, credit report, corporate registry, lender references

• Permits in hand, plans, contractor under contract (RBQ), realistic schedule: 8 to 10
• Permits pending, plans and team in place: 5 to 7
• Concept stage: 2 to 4
• Nothing documented: 0 to 1

Permits, plans, contractor agreement, schedule; for a standing building: leases, condition of the asset, capex plan

• Cost breakdown within 10% of market benchmarks (Cost Analyzer™), contingency of 5% or more, realistic soft costs: 8 to 10
• 10 to 20% gap, or thin contingency: 5 to 7
• Gap above 20%, or key lines missing: 2 to 4
• No cost breakdown: 0 to 1

Cost breakdown (hard costs, soft costs, contingency), bids, operating budget for a standing building

• Prime location, liquid asset, demonstrated absorption: 8 to 10
• Secondary market, adequate demand: 5 to 7
• Weak demand, special-purpose asset, long absorption: 2 to 4
• Illiquid asset: 0 to 1

Appraisal (market section), market study, rent roll, comparables

• Existing client: 5
• Referred by a partner broker: 3
• New client: 1

History with Capital Norvex, partner broker code