OUR INVESTMENT SCREENING PROCESS

Providing Access to a Range of Deals

Our Investments Team is on the ground across the country, searching for compelling real estate projects from experienced sponsors. We recognize that when it comes to investing, there’s no one-size-fits-all solution. That’s why we work to bring a variety of quality investment opportunities to the Green Lock platform. We take a highly selective approach, with only about 1 in 20 deals we review ultimately approved and launched on our platform.1

Rigor and transparency are at the core of our review process. Our FINRA-licensed, experienced team of real estate professionals conducts an extensive screening process for both sponsors and investment opportunities before approving them for our platform. We then publish a detailed checklist for each offering so investors know exactly what vetting we’ve undertaken as they evaluate the investment opportunity.

Our comprehensive deal review process has two key components:

SPONSOR SCREENING

Evaluating the firm

Our team conducts a rigorous and objective review of each sponsoring firm before they join our platform. This thorough examination aims to ensure we bring only quality offerings from reputable, experienced operators to our investors.

Our multi-layered sponsor screening process includes but is not limited to:

  1. Background check: We conduct in-depth background checks on the sponsor and its principals using third-party vendors and technology.
  2. Sample reporting review: We review a sample quarterly report for all new sponsors, ensuring that the report meets necessary requirements and generally aligns with investor expectations.
  3. Financial vetting: We require sponsors to provide two years of financial statements.
  4. Track record review: We review sponsors’ experience in executing similar business plans to their proposed offering, considering the asset type, asset size, investment profile, and project location.

For each offering, investors can access a downloadable “Sponsor Screening Checklist.” This checklist offers investors direct insight into the due diligence we conducted to evaluate the sponsor.

DEAL SCREENING

Evaluating the property

Green Lock reviews a range of documentation obtained from the sponsor and third-party sources to validate assumptions in the business plan and gain a deeper understanding of the potential rewards and risks associated with each deal. This review allows us to share relevant and comprehensive information with investors so they have visibility and clarity into the investment opportunities that we present on our platform.

Key material we review includes but is not limited to:

  • Financial model / pro forma
  • Market, rent, and sales comparables
  • Offering Memorandum
  • Legal documents
  • Loan documents
  • Rent roll
  • Financial statements

We include comprehensive ‘Deal Screening Checklists’ on our offering detail pages to give investors a clear view of the due diligence conducted on the deal.

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