HARD MONEY MORTGAGE LENDING
Taurus makes loans to non-traditional borrowers secured by first mortgages on commercial and multi-family residential real estate. These loans, based on the value of the asset and not the borrower’s credit, are called “Hard Money” loans. Because of their lack of access to other credit markets, these borrowers will pay above market-rate interest rates for their financing.
Taurus focuses on loans under $5 million. Taurus’s management and underwriting team consist of an attorney with extensive alternative investment experience and a CFA® charterholder with an MBA in Finance. Taurus’s expertise and stringent underwriting standards ensure that only those loans with the highest risk-adjusted returns are considered.
Taurus has access to proprietary deal-flow via a first-look agreement with a large hard money broker. This arrangement allows Taurus the ability to deploy significant capital into the hard money space.
Risk Mitigation:
-
All loans are secured by commercial or residential real estate with a maximum 65% loan to value ratio.
-
Low loan to value ratios provide incentive for borrowers to repay and protection for investors if they don’t.
-
First lien position only
-
Pool of loans diversified by property type, loan size, and loan term
-
Short initial term of a maximum of 36 months limits interest rate risk
-
Penalty interest rates applied in the event of default
Actual returns will vary and there can be no assurance that an investment's projected or actual performance will lead to the targeted results or perform in any predictable manner. Past performance is no guarantee of future results, and any expected returns or projections may not reflect actual performance.