How AVCG evaluates a borrower

Every deal we fund started with a borrower we approved. Here's what we look for and — as important — what we decline.

What we look for

• Completed prior projects of similar scope and complexity
• Realistic ARV backed by comparable sales, not just optimism
• Detailed scope of work with a credible timeline and budget
• Cash reserves to cover carrying costs and overruns
• A clear, specific exit strategy (sale, refi, or 1031)
• Property in a market we know

Why we decline

• Owner-occupied property (never)
• Optimistic ARV that doesn't hold up to comps
• Rehab budget that ignores contingencies
• Borrower liquidity too thin to absorb an overrun
• Vague exit or a market we don't understand

First-time borrowers

First-timers aren't automatically declined — but the bar is higher and often requires an experienced GC or partner on the deal. That way, borrower inexperience is offset by professional execution.