At Conduit Capital, we don’t just fund deals — we protect capital. That’s why our underwriting process is built to filter out the fluff and surface the facts that matter. Before a single dollar is deployed, we put borrowers, projects, and markets through a rigorous vetting system designed to shield our lenders from unnecessary risk.
Vetting Borrowers: We Invest in Operators, Not Just Deals
We look beyond the property and start with the person behind it.
What We Evaluate:
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Track Record: Have they flipped or held real estate before? We want to see experience — and how they’ve handled adversity.
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Creditworthiness: While we’re not traditional lenders, we still check credit reports, bankruptcies, judgments, and delinquencies to flag red flags.
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Liquidity and Reserves: Can the borrower weather delays, cost overruns, or unexpected repairs? We require proof of funds and often ask for reserves to be held.
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Communication Style: Are they responsive, professional, and proactive? A great deal means nothing if the operator goes MIA mid-project.
We’re looking for borrowers who treat investing like a business — not a hobby.
Vetting Projects: The Numbers Have to Make Sense
A solid borrower can still get into a bad deal. That’s why every project goes through our underwriting team for a full analysis.
What We Scrutinize:
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ARV (After Repair Value): We run our own comps and don’t rely on inflated projections. If the exit value is off, the whole deal can crumble.
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Scope of Work: Does the rehab budget match the work required? We review line-item costs, contingency buffers, and timelines.
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Loan-to-Value (LTV): We cap our exposure — often lending no more than 65–70% of ARV — to maintain strong equity cushions.
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Exit Strategy: Whether it’s a flip, BRRRR, or short-term rental, we confirm the investor has a realistic plan with built-in margin.
No matter how exciting a deal looks on paper, it doesn’t get funded until the numbers work in the real world.
Vetting Markets: Because Not All Zip Codes Are Created Equal
A great operator in the wrong market is still a risky proposition. That’s why we’re highly selective about where we lend.
What We Consider:
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Rental Demand: Is there a tenant pool for long-term or short-term strategies? We look at vacancy rates and average rent growth.
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Sales Velocity: Are flips selling quickly? How long are properties sitting on the market in that neighborhood?
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Economic Drivers: What’s the job market, employer base, and local development pipeline?
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Local Regulations: Are there landlord restrictions, short-term rental bans, or high permit hurdles?
We focus on stable, investor-friendly markets where real estate performance is backed by real economic fundamentals — not speculation.
Final Word: Trust Is Earned — Not Assumed
At Conduit Capital, we know our lenders are trusting us with their hard-earned money. That’s why we obsess over vetting every detail before funding a deal.
We don’t chase every opportunity. We chase safe, scalable, smart returns.
Want to see how we put your capital to work with confidence?
📞 Book a strategy call today
