It’s the concept of value add or value creation. We’re lending against that hoped for value creation. In some cases, maybe there’s not a ton of value creation, it’s just a borrower who’s got a CMBS loan that’s maturing, didn’t want to put the capital in or couldn’t get the servicer to do something, and then the loan matured. Our belief is that we spread that risk over six deals that’s a better proposition. Hopefully we get a little bit more spread for doing smaller deals. It’s more for the diversification of risk for us.
A commercial building/property inspector will be able to help you discover underlying risks that may be hidden in potential properties in which you may invest. Call Allison Property Inspections with your questions about our detailed process for inspecting commercial, industrial, retail or multi-family buildings in Los Angeles, Riverside or Orange Counties.