Disciplined underwriting is not a marketing phrase at Requity. It is an operational reality that directly protects investor capital. For every 30 loans we fund, approximately 200 opportunities enter our pipeline. The 85% rejection rate is intentional and reflects a multi-stage evaluation process designed to identify and mitigate risk before capital is deployed.
Stage 1: Initial Screening
Every deal enters through a standardized intake that captures property type, location, loan amount, LTV request, borrower experience, and exit strategy. Approximately 40% of inquiries are filtered out at this stage for basic disqualifiers: LTV requests above our risk threshold, property types outside our lending parameters, or borrowers who cannot demonstrate a viable exit.
This stage is fast and binary. We respond to every inquiry within 24 hours with either a preliminary term sheet or a clear explanation of why the deal does not fit. Speed matters for borrowers, and honest feedback early prevents wasted time on both sides.
Stage 2: Property and Market Analysis
Deals that pass initial screening enter a deeper analysis phase. Our team evaluates the property against comparable sales, rental comps, and market fundamentals. For value-add deals, we stress-test the borrower's renovation budget and projected ARV against conservative assumptions. For manufactured housing communities, we analyze lot rent comps, utility cost structures, and occupancy trends at the submarket level.
Another 25% of deals are filtered here, typically because the borrower's projected returns rely on optimistic assumptions that our independent analysis does not support.
Stage 3: Borrower Due Diligence
Sponsor evaluation goes beyond a credit check. We review the borrower's track record project by project: how many deals completed, what were the outcomes, did prior bridge loans pay off on time? Repeat borrowers with clean histories move through this stage quickly. New borrowers face additional scrutiny but are not automatically disqualified; strong deal fundamentals can compensate for limited history.
Stage 4: Credit Committee
Every deal that reaches credit committee is presented with a full risk memo covering property analysis, market assessment, borrower evaluation, and exit strategy viability. The committee reviews each deal independently and approves, conditions, or declines. Conditioned approvals may require additional equity, a lower LTV, or specific milestones tied to draw schedules.
What This Means for Investors
The portfolio that results from this process has specific risk characteristics: weighted average LTV below 70%, diversified across property types and geographies, and populated exclusively with deals that survived scrutiny from multiple independent evaluators. No single deal represents an outsized concentration, and every loan has a documented, viable exit path.
This is the discipline that produces consistent, risk-adjusted returns for our fund investors. If you are evaluating private real estate debt as an allocation, learn more about how Requity structures investor participation.