• Quality of Management
Experienced and proven track record preferred.

• Leverage Ratio of Book Value Debt to Equity
1:1 Ratio - Excellent
2:1 Ratio - Very Happy
3:1 Ratio - Usually Acceptable
4:1 Ratio - Occasionally Acceptable

• Coverage Ratio
Measures ability to cover the debt service obligation.

Interest Coverage Ratio -- Ability to pay interest on debt

P & I Coverage Ratio -- Ability to pay principal and interest on debt
140%+ Coverage - Excellent
130%+ Coverage - Very Happy
120%+ Coverage - Usually Acceptable
110%+ Coverage - Occasionally Acceptable

• Value of Collateral or Liquidation Value
This is the appraised and/or discounted value of collateral. Also referred to as the "under-the-hammer" value.