How first-lien security protects your capital

A first-lien mortgage is the strongest secured position on real property. If the borrower defaults, the first-lien holder is repaid first from any sale of the property — before any other creditor.

What 'first lien' actually means

When AVCG makes a loan, we file a mortgage against the property in first position. That mortgage is public record. If the property is ever sold or foreclosed, our lien is satisfied first, up to the loan balance.

The worst-case scenario

If a borrower defaults, Ohio (a judicial foreclosure state) puts us on a well-defined path: notice of default, filing, judgment, sheriff's sale. The process typically takes 6–8 months.

Because we're in first position and sized to 65% of ARV, the property has a substantial equity cushion. In practice, that means we recover the loan balance from a sheriff's sale in almost every scenario — the borrower loses their equity long before investor capital is at risk.

Not fund shares

Some investment vehicles pool capital across many loans and give investors a share of the fund. That's a different risk model — if the fund has losses on one loan, all investors share the loss.

AVCG structures placements against specific first-lien loans on specific properties. Your capital is tied to real collateral you can see, not a pooled promise.

Insurance

Every property carries insurance naming AVCG as additional insured and mortgagee. If the property is damaged or destroyed, insurance proceeds flow to the loan first, before the borrower.