You've probably seen the headlines lately. Private lending has taken some heat in the news, and rightly so in certain cases. When investor money gets mismanaged, everyone in the industry feels it. Trust is fragile.

So let me walk you through what actually happens when a loan request hits my desk.

First question: what is the property really worth? Not what Zillow says, not what the borrower paid five years ago — what a disciplined appraisal backed up by current comps tells us. We stick to conservative loan-to-value ratios. On a first trust deed, that usually means lending at 65% of value or less. That cushion isn't a nice-to-have. It's the whole game. If something goes sideways, the equity in the property is what protects the investor's principal.

Second question: who is the borrower, and what is the exit? I want to know how this loan gets paid back. A fix-and-flip borrower has one exit. A bridge loan on a commercial property has another. If the exit story doesn't hold up under questioning, the deal doesn't make it to funding.

Third question: is there anything unusual in the file? Title issues. Tax liens. Recent transfers that look odd. Prior litigation on the property. Permit problems.

Fifty-one years in, Val-Chris has funded a lot of loans. We've also passed on a lot. The "no" deals matter just as much as the "yes" deals — maybe more.

Here's the thing about trust deed investing. The returns are real. Monthly income, short durations, tangible real estate collateral. But those returns only matter if the underwriting is sound.

When you invest with us, you're not handing your money to a black box. You see the property. You see the appraisal, the title work, the LTV. You decide.

That transparency has been the model since 1975.