The biggest problem in the lending industry is the risk of bad debt. The selling point for loan projects on this site is the efficiency of recovering bad debts for lending projects. Even if the biggest problem in the lending industry – “bad debt” – occurs, since the loans are backed by real estate collateral, compared to unsecured loans there is a very low failure rate.

The mechanism of the American real estate market has been very well maintained such that transactions are fair and secure, and carried out smoothly. As a result, with a fair and smooth transaction performed, you can prevent defects or accidents. At the time of real estate buying, selling, and lending, third party intervention such as title insurance and escrow can carry out various procedures such as the transfer of ownership as well as the mortgage.

Establishment of principal recovery system in the event of an emergency

We carefully assess the market value of real estate collateral in advance, and follow the rule that the loan amount must be less than 70% of the property valuation. In other words, the loan is structured such that even if the interest payment stagnates, a decrease of up to 30% of the real estate collateral’s market valuation does not have an effect on the valuation of the capital. Also when achieving principal recovery by ultimately selling the collateral property due to the stagnation of interest payments on a loan property, in the case that the property valuation has been reduced by up to 30%, the loan is structured such that the principal is returned to you.