About Us
Vestin is a short-term real estate and construction lender, which holds a
mortgage broker's license in Nevada. Vestin obtains borrowers through referrals,
repeat business, or other licensed brokers in compliance with Nevada law.
We fund loan requests primarily through publicly traded REITs (VRTA, VRTB)
and Vestin Fund III, a real estate investment program registered with the SEC, or in combination with
our own funds and lines of credit.
Since 1995, Vestin has brokered approximately 900 loans totaling more than $2
billion dollars. Most of our
loans are between $2.5 million and $10 million, although we have closed several loans
between $10 million and $45 million. Our loans are for one year, but we will consider
extending loans for up to an additional year if a borrower has performed as agreed and
meets other qualifying criteria.
The Vestin Borrower
Vestin serves an assortment of borrowers, seeking loans on income, acquisition, development
and construction properties, as well as raw or unimproved land. We also serve those who need
very short term, bridge financing, allowing them time to obtain permanent financing. Vestin
has established relationships with seasoned borrowers whose histories of strong performance
make them likely candidates for repeat business. Our borrowers receive the advantage of loans
that can be rapidly processed without common banking delays or enormous documentation. In
addition, a bank loan is often unavailable due to federal and local regulations. The loan is
otherwise virtually "bankable", due to substantial equity in the borrower's property.
Vestin's Underwriting Process
Of the numerous loans presented to us, Vestin's underwriting team carefully selects the safest
loans. We rely most upon the value and location of the real estate proposed as security. One
rule of thumb we attempt to follow is: "If it's not worth owning, it's not worth loaning".
Although we do not desire to own any of the properties securing our loans, this rule of thumb
is a helpful guide. Therefore, prior to lending, each property is personally inspected and an
appraisal is obtained. Property values and loan viability are also reviewed through comparable
market analysis and other factors, including the purpose of the loan, along with the location
and nature of each property. After Vestin's personal inspection of a property, the loan goes
before our Loan Committee, comprised of the top officers of the company. The Committee makes
a conservative decision on the loan amount. This is important because it is critical to loan
the correct amount relative to the value and other factors affecting the property. By only
lending based on conservative values provided by an appraisal or the borrower/owner, we
attempt to increase the margin of safety. We also strive to determine the income, or potential
income, as well as the capital and character of the borrower, supported by financial data. This
process is streamlined in cases where borrowers have established reputations with us and other
lenders. Further, we seek borrowers who have substantial capital invested, or to be invested,
in a property. As an additional assurance, we require a personal guarantee from at least one of
the individual principals with each borrower. Each loan is thoroughly documented by our
professional staff. In the preliminary process, a title report is obtained and reviewed on each
property, followed at loan closing with a title insurance policy insuring the status and priority
of the First Trust Deed. If the subject property is raw or unimproved land, Vestin will loan up
to between 35% and 60% of its value. However, in most instances the loan will not exceed 35% of
the value. If the property is to secure a construction loan, we will lend up to between 60% and
75% loan-to-value. Construction loans are based on the dollar amount per square foot and the
location of the project. Once a construction loan closes, an independent construction control
company oversees the development and assures strict compliance with the loan agreement, requiring
the timely payment of interest, documentation of labor and material, while independently inspecting
the progress of the development prior to disbursing loan proceeds. The result of Vestin's operations
and vast experience lower every investor's risk.