OCFN Regardless of the type of Loan, OCFN’s originating focus will always include the following goals and considerations:
Earn rates of return that exceed the commensurate level of risk associated with each Loan and financing program;
Independently assess the value, volatility, and adequacy of the collateral for each Loan;
Submit loans that are appropriately collateralized;
Assess the ease with which Omega can repossess and dispose of the collateral for each Loan; and
Ensure that each Loan has the proper legal documentation including but not limited to flood insurance , fire insurance, key-man insurance, and surety bonds
Evaluation, appraisals & feasibility reports are required for each Loan's final approval and will be completed by an additional outside 3rd Party organization. Title Commitments Policies will be in the name of the Partnership and will be required prior to Loan approval of all Loans
Omega will make Loans up to 75% of the fair market value or acquisition cost whichever is the lesser of the asset’s value.
Minimum Debt Coverage Ratio of 1.1x and can be less if covered by reserves
The fair market value of the asset(s) is determined by a certified MAI appraisal and evaluation firm selected by Omega
The principals of Omega shall determine what portion of Omega’s investment shall be allocated to each type of Loan transaction
The Loans may be originated or purchased using leverage (i.e., borrowed funds), a co-investment with other large institutions, and or syndication of whole loans that are available to Omega, thus increasing both net returns as well as risk
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