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Investment Strategy

Cervenka & Lukes is an industry expert in real estate hard money lending. We offer real estate bridge loan opportunities that generate superior yields for our investors, while commensurately providing strong protection of our investors’ capital. We find creative solutions which allow quick access to capital for borrowers with attractive, low-leveraged commercial and residential real estate assets. This strategy embraces rigorous and effective due diligence in the underwriting of every investment opportunity and, if necessary, a quick and efficient disposition of foreclosed properties within our portfolio..

We focus on several key characteristics when deploying our firm’s discretionary capital. Each investment is evaluated individually with the single most important criterion being the underlying real estate collateral with strong, protective equity from the borrower. Real estate asset types under consideration for our bridge lending program must be either a 1- to 4-unit non-owner-occupied residential property, a multifamily property, or a commercial property.

In our due diligence – we place great importance on several critical underwriting factors:

1. The property’s current and or potential net operating income at stablization

2. The immediate demand for the property given the sub-market fundamentals

3. The property type

4. The investment’s overall leverage exposure

5. The borrower’s creditworthiness with strong emphasis on experience and current global cash flow