As the manager of Vestin Realty Mortgage I, Inc. and Vestin Realty Mortgage II, Inc. ("REITs"),
Vestin Mortgage manages and performs all functions of real estate lending, including credit
evaluation, and decides which real estate loans they will invest in.
Evaluation and Acquisition
Vestin Mortgage considers and evaluates prospective loans for the REITs. In that regard, Vestin Mortgage evaluates the
credit of prospective borrowers, analyzes the return of potential mortgage loan transactions,
reviews property appraisals, and determines which types of transactions appear to be most favorable the REITs.
Our obligation to invest in any real estate loan will generally be
conditioned upon the delivery and verification of certain documents from mortgage brokers, sellers, developers, or borrowers, including environmental
reports, evidence of marketable title, audited financial statements covering recent operations of properties with operating histories and title and
liability insurance policies.