Bridge Loan Capital Fund normally receives many inquiries per week as to whether the Company would be interested in funding a particular project. These inquiries come mostly from known loan brokers who are familiar with Bridge Loan Capitals lending terms, limits and approval process. Thus, loans are already “pre-screened” by brokers for appropriateness with Bridge Loan Capital Fund’s criteria.

Most of these loans are rejected without ever reaching the Credit Committee for discussion. Out of 30 inquiries, one loan is funded. Those that are funded have passed through a unanimous vote of the Credit Committee, which meets each Wednesday morning. The Committee also meets on an ad hoc basis or in counterpart whenever necessary, especially if the deal is time sensitive and partners are away on due diligence trips.

In addition to reviewing appraisals, comparables, and MLS sales Data, Bridge Loan Capital Fund has a policy of “walking the dirt” that requires an Owner or an authorized representative to have located and physically inspected the property for risk factors that may make the collateral either unattractive to potential buyers, or unviable for the planned projects. These factors would include things like power lines, railroads, high pressured gas lines, wetlands, flood plains, refineries, nuclear waste dumps, etc.

Bridge Loan Capital Fund follows a very detailed “due diligence checklist” that is patterned after those used by commercial banks in analyzing a loan for funding. (See Exhibit A). The primary difference, however, is that Bridge Loan Capital Fund compresses that due diligence period by assigning more resources and by working long hours, weekends and holidays as may be required to meet tight borrower deadlines, such as the expiration of a borrower’s option on a property. The General Partner Maintains documents and materials gathered in the due diligence process in orderly and detailed loan files that are available to regulators for inspection at any time.

Because of the shorter due diligence timeline, Bridge Loan Capital Fund relies heavily on title companies and the significant insurance companies that back them. For this reason the General Partner has a strong preference for title companies that are well known to the Company, and which have strong nation-wide or local reputations.

Bridge Loan Capital Fund also consequently relies more heavily on what banks would call the secondary source of repayment (collateral), instead of the primary source (the borrower) in the avoidance of risk and losses of capital. The General Partner judges the value of collateral against the loan request using a document called the “Quicksheet”.)