Alternative Lenders: 3 Ways Independent Valuations Foster Success

Success in alternative lending requires raising capital at scale, as a larger asset base provides the foundation to better manage costs. Investors want to see regular and transparent reporting on asset values, whether equity or debt. Alternative asset managers gain a competitive advantage by leveraging best practices in valuations, which can help raise capital from large investors seeking solid controls.  

Getting marks done independently on a periodic basis, whether quarterly or monthly, provides clarity for investors, and shows that a lender has proper checks and balances to reduce the possibility of stale or off-market valuations. In addition, delegating the back-end operations of valuations can give alternative lenders the capacity to focus on their core missions, scale more quickly and pivot nimbly. Alternative lenders should look for a valuation partner with a deep knowledge base around commercial real estate, as well as robust systems and an experienced team.  

Click on the infographic below to learn three ways that outsourcing valuation activities can improve business for alternative lenders. For more information on SitusAMC’s full suite of services for alternative lenders, visit our website.