A common theme and industry standard in private lending is that the largest portion of underwriting is based on the value of the asset in relation to the amount of the loan (LTV) and is touted as the ultimate insurance plan for the investors – and if anything goes wrong; the lender will take the asset and recoup all losses based on the lower LTV.  For our purposes we will call this: loan to own underwriting.  Certainly the value of the asset is of fundamental importance to the underwriting as the value of the asset is the actual security for the principle.  However; this is a significant PITFALL in the industry as it manifests itself as the projected cure for any issue.  This form of underwriting almost begs for inflated valuation of the property and may ignore threats to the transaction such as; weak due...