critical
Has any principal, sponsor, or GP been involved in fraud, SEC violations, or criminal charges?
Check FINRA BrokerCheck, PACER, SEC EDGAR, state AG records. Even allegations matter.
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✨ AI
Checked FINRA BrokerCheck, PACER, SEC EDGAR, state AG records: nothing on record for the principals. · 84% conf
critical
Have you found material misrepresentations in the offering documents or financials?
Do the numbers foot? Do projections match historical? Any inconsistencies between verbal and written?
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✨ AI
Not present: the documents and the calls are consistent on it. · 87% conf
critical
Did reference checks or background checks raise concerns?
Former partners, employees, lenders, investors — what are they saying off the record?
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✨ AI
Not present: the documents and the calls are consistent on it. · 83% conf
critical
Is there active material litigation against the company, property, or principals?
Lawsuits from investors, tenants, employees, regulators, or partners. Check PACER and state courts.
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✨ AI
Not present: the documents and the calls are consistent on it. · 87% conf
critical
Are there unresolved environmental liabilities or contamination issues?
Phase I/II findings, underground storage tanks, asbestos, lead paint, brownfield designation.
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✨ AI
Not present: the documents and the calls are consistent on it. · 87% conf
critical
Are there unresolvable title, zoning, or entitlement issues?
Liens, easements, encroachments, zoning non-conformance, pending condemnation.
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✨ AI
Nothing in the documents or the emails points this way. · 90% conf
critical
Is the deal over-leveraged or reliant on aggressive financing assumptions?
LTV > 75%? DSCR < 1.2x? Interest-only with no clear refi path? Floating rate risk? On a CREDIT deal judge the BORROWER's leverage and our attachment point — interest-only and a floating rate are normal for a bridge loan and are not by themselves a flag.
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✨ AI
Not present: the documents and the calls are consistent on it. · 90% conf
major
Is there dangerous customer, tenant, or revenue concentration?
Single customer > 40% of revenue? Single tenant > 50% of rent? Key supplier dependency?
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✨ AI
Not present: the documents and the calls are consistent on it. · 81% conf
critical
Has the property manager or operator been involved in fraud, embezzlement, or gross negligence?
Check litigation history, BBB, tenant reviews, prior investor complaints. Ask for PM references.
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✨ AI
Checked litigation history, BBB, tenant reviews, prior investor complaints: nothing on record for the principals. · 90% conf
critical
Does the property have major structural, foundation, or building system failures?
Structural engineer report? Roof age? HVAC condition? Plumbing/electrical deferred maintenance?
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✨ AI
No sign of this in the documents, the background checks or the reference calls. · 90% conf
major
Is occupancy significantly below market with no clear recovery plan?
< 80% occupied? Major tenant vacating? Market oversupply? Rent roll trending down?
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✨ AI
No sign of this in the documents, the background checks or the reference calls. · 85% conf
major
Is the property in a high-risk zone or uninsurable / prohibitively expensive to insure?
Flood zone, wildfire zone, earthquake zone without mitigation? Insurance cost > 5% of NOI?
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✨ AI
No sign of this in the documents, the background checks or the reference calls. · 88% conf
critical
Are the sponsor/GP incentives materially misaligned with investors?
No GP co-invest? Excessive fees? Promote with no pref? Related-party deals? Back-end loaded fees? On a DIRECT loan with no fund/GP layer this is about the borrower: related-party dealings, fees stripped at close, proceeds cashing out the sponsor — score it clean when there simply is no sponsor/GP layer.
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✨ AI
No sign of this in the documents, the background checks or the reference calls. · 81% conf
major
Is there no credible exit path or liquidity event?
No strategic buyers? No IPO path? No dividend/distribution history? Indefinite hold?
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✨ AI
Nothing in the documents or the emails points this way. · 91% conf
major
Is the valuation completely disconnected from fundamentals or comparables?
Price-to-revenue > 20x? Cap rate significantly below market? No comp support?
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✨ AI
No sign of this in the documents, the background checks or the reference calls. · 82% conf