Romspen is one of Canada's oldest and largest non-bank mortgage lenders. We have consistently followed a simple and proven investment approach which has produced excellent returns for our investors over a long period of time. First, and foremost, we focus on capital preservation and look for safe mortgages and avoiding all aspects of risk in the loan. From a return perspective, we focus on generating strong absolute cash returns, regardless of the prevailing investment climate. Last, we strive for consistency and predictability in our returns, month-to-month and year-to-year. Sound commercial mortgage lending is not based upon a convenient financial model or scoring template. Rather, it is based upon the availability of safe mortgages and a common-sense approach to lending. Successful lending involves an intense, hands-on process which is essential to avoiding losses. Capital preservation is always paramount as losses can reduce returns much faster than they can be increased by high interest rates. While our strategy is simple, its consistent execution over many years is more involved and is based on the following parameters: Solid Underwriting Rigorous quantitative analysis, visiting every property and interviewing every borrower is the foundation of our lending. Prudent Lending Loan-to-value ratios of approximately 65% at the time of underwriting help create a margin of safety. Short-Term Mortgages With an average term of under two years, we have an opportunity to reassess the credit terms frequently. Diversification A mix of loans by size, borrower, geography and property type smooths returns by limiting exposure to any one area. Syndication On larger loans, we reduce our exposure by including partners we know. Experience We have extensive expertise in working through difficult situations when they do arise to produce successful outcomes. Exit Strategy Before we invest, we have a clear understanding about the path to repayment. Monitoring Once a loan is advanced we continue to regularly monitor the borrower and the property until the mortgage is repaid.