The AVCG underwriting process, step by step

Every AVCG loan runs through the same six-step underwriting review. Applied consistently, it's what makes attractive investor returns credible.

1. Borrower review

Experience, background, and prior project portfolio. Fresh operators aren't disqualified — pairing with a proven builder or GC can bridge the gap on a first deal with us.

2. Project analysis

Scope of work, renovation plans, budget, and timeline. Realistic budgets close faster than optimistic ones — always plan for contingencies.

3. Property evaluation

Current condition, comparable sales, ARV, purchase price, and estimated repair costs. Where ARV depends heavily on comps, we may require a full appraisal.

4. Financial review

Liquidity, credit, and financial capacity to complete the project — including the ability to cover carrying costs and any overruns. Cash reserves matter more than credit score on rehab loans.

5. Risk assessment

Market conditions, property type, exit strategy, borrower reliability. Terms may be adjusted — a slightly lower LTV or an interest reserve — to ensure appropriate protections.

6. Final approval & terms

Once underwriting is complete, we finalize loan amount, interest rate, fees, and any conditions, and prepare a term sheet for review. Terms are quoted upfront — no surprises at the closing table.