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Montegra's Hard Money Blog

Taking a Three-Pronged Approach to Valuing Properties

There are three primary facets of property value that must be considered and weighed to understand the big-picture value of your investment property.   Distinct qualities that can be quantified: Valuation begins with the most obvious, easily quantifiable characteristics of a property, such as age, size, layout, etc. These qualities have exact measurements that cannot […]

RECOURSE VS. NON-RECOURSE LOANS: Important Factors to Understand

Colorado Real Estate Journal Article About Montega - A Colorado Hard Money Lender

By Robert Amter – Colorado Real Estate Journal – May 18-May 31, 2016 Commercial real estate investors and developers need to be aware of the implications of obtaining a commercial real estate loan with recourse as opposed to obtaining a loan that does not require recourse. Recourse loans, which are the norm for almost all […]

Why You Should Use a Local Hard Money Lender

If you’re looking for a hard money lender and you’re debating between requesting a loan from a large, national lender, or a smaller, local lender, there are a multitude of reasons to choose a local lender over a national one. Here are five of the top reasons to use a local hard money lender:   […]

After-Repair Value and Hard Money Loans

One of the greatest differentiators between hard money lenders and institutional lenders is that hard money lenders are willing to consider after-repair value (ARV) while institutional lenders will only consider as-is value when they are determining your loan amount. What is after-repair value? ARV is the estimated value of a property once all repairs and […]

Beware: CMBS Maturities Up Ahead

The Background From 2005 to 2007, lenders originated over $600 billion in commercial-mortgage-backed securities. Because these loans typically have a ten-year maturity date, this means that the majority of these loans are going to begin maturing in 2015, for a total of over $350 billion. The state of the market immediately preceding the financial crisis […]

Why Hard Money Is Good for Distressed Property Deals

There are many reasons why hard money loans can be useful to borrowers who want to purchase distressed properties, whether they are commercial or non-owner-occupied residential properties. Hard money loans allow purchasers to offer cash to the seller, which can provide leverage in price negotiations, and can usually be underwritten in weeks rather than months, […]

Reputable Private Capital Bridge Lenders Are Gaining Popularity

Private capital lenders (also sometimes called “hard money lenders”) are increasingly in demand to provide loans for most types of commercial real estate transactions—everything from simple investment-purpose residential properties to large-scale mixed use construction projects, from undeveloped land purchases to cash-out loans on retail properties. Why are they keeping so busy? It’s the approach that […]

Commercial Loan Underwriting: Four Metrics Well Worth Knowing

In commercial real estate lending, there are four main metrics that influence loan underwriting: loan-to-value (LTV) ratios, cash-flow analysis, borrower’s credit history, and property value. Understanding these four metrics, conducting your own initial due diligence in regards to them, and then preparing documentation for your lender to support them can speed up the underwriting process […]

Hard Money Loan Structure 101: What the First Time Private Capital Borrower Needs to Know

The most important thing to know about hard money loans is that they are not for every project. Hard Money Loans are also called Bridge Loans by many lenders. These loans are best for short-term projects with equity that need quick, efficient financing and don’t fit inside the confining box of bank lending guidelines. Such […]

The 5 Biggest Hard Money Myths Debunked

The term “hard money” sometimes seems to loom in the shadows like a scary monster, but in reality hard money is neither scary nor a monster. In fact, it can often be a commercial real estate investor’s best friend, providing financial assistance quickly in times of need. The “hard” in hard money does not refer […]

Why You Might Benefit from a Bridge Loan

Bridge loans (sometimes also called “hard money loans”) have gotten a lot of attention recently because of the surplus of commercial-mortgage backed securities (CMBS) that are scheduled to mature over the next few years. A recent report by Trepp LLC (a well-respected financial analysist group) predicts that “60 percent of the entire CMBS public-conduit universe […]

Hard Money Lender Scams and How to Avoid Them.

There has been increased demand for bridge loans (sometimes called hard money loans), which has led to a surge in the number of bridge lenders. While the vast majority of these are reputable lenders, it only takes a few dishonest lenders to make borrowers wary and give hard money lending a bad name. The most common […]

4 Ways to Speed Up Your Hard Money Loan Closing

One of the biggest attractions of hard money loans is the speed with which they can be closed (often in only two weeks) compared to the months that it can take to obtain a commercial loan from a bank. Hard money lenders such as Montegra Capital Resources require less red tape than conventional lenders, enabling […]

Sell Now, Sell Later: Choosing the Right Exit Strategy for You

You’ve purchased your investment property. You’ve put money and hard work into renovating the property. Now what? Exit strategies are not one size fits all; they must be customized to fit each individual situation. While it’s important to have an exit strategy before you purchase a property, fluctuations in the market and your own financial […]