Receive Asset Data - the acquisition process starts with the analysis of a data file provided by the seller, which offers basic descriptive and financial data on each asset.
Asset Valuation - using Equigrowth's proprietary comp analysis software, a valuation is determined for each mortgage note's underlying property to compare against those provided by the seller as a base to bid the asset.
Pricing Model - the data file is uploaded into Equigrowth's proprietary pricing modeler which utilises a non-linear solver engine to achieve a minimum return on investment threshold based on varying exit scenarios and weighted probabilities on the occurrence of each. This can occur in as little as a few hours upon receipt of the data, depending on the completeness of the information received.
Due Diligence
Checklist - Equigrowth has an exhaustive checklist for each individual asset that we thoroughly vet during the due diligence process.
Loan File Review - all pertinent origination and servicing documents are reviewed to obtain a clear picture of the borrower and the property.
Pay History/Servicing Review - all key information from the servicing of the asset, including the pay history, is reviewed and key data is collected.
Asset Valuation - Equigrowth will perform a more rigorous valuation of the asset securing the loan when applicable. This may include broker price opinions, site inspections, automated valuations and other methods.
Final Pricing And Contract
Final Pricing - all information collected during the due diligence process is entered into the pricing modeler and reviewed to derive a final price. This price is communicated to the seller for final acceptance.
Final Contract - based on due diligence and the original commitment letter, Equigrowth works with the seller to develop a mutually acceptable final Purchase and Sale Agreement.
Closing And Servicing Transfer
Collateral Files - the loan files and legal documents are reviewed by Equigrowth and/or its legal team for any ambiguities prior to the funding of the transaction.
Servicing Transfer - Equigrowth works with the seller to transfer all files to our servicer as soon as possible to begin our borrower outreach and loss mitigation efforts.
Closing - Purchase and Sale Agreement is executed, purchase price is wired, and collateral files are shipped.
