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Montegra's Hard Money Blog

Hard Money Loan Approval: Story Trumps Data

Many of the larger traditional mortgage providers are now using sophisticated computer programs to crunch the numbers and determine to whom they will lend and how much. This is often touted as progress and technological advancement, but it is also easy to lose sight of the story behind the data. Bank lenders used to be […]

Hard Money vs. Institutional Loans: Interest Rates vs. Prepayment Penalties

Hard money loans (sometimes called Bridge Loans) are often considered the sole purview of borrowers with bad credit history, but there are other benefits to using hard money to finance real estate investments. There are two factors that can influence a borrower to choose hard money over conventional bank or life insurance company loans: interest […]

Why the Hard Money Lending Sector Is Flourishing

As other sectors of the lending industry have cut back on the financing they provide, hard money and private capital lenders have stepped in to fill the void. In a world where property deals come and go in the blink of an eye but bank loans can take months to close, the alacrity and creativity […]

5 Reasons to Develop Relationships with Hard Money Lenders

It can be extremely difficult, especially in the current lending market, to obtain financing for unconventional projects or deals, regardless of how potentially bankable they may be. This is why getting to know local hard money lenders is important to real estate investors, because these are the lenders they will turn to when they have […]

3 Tips for Finding a Quality Source of Private Capital

Although getting approved for a hard money loan is not that difficult, finding a reputable hard money or private capital lender is often the more challenging task. Here are three tips to help you find a quality source of private funding for your out-of-the-bank projects. Seek out a lender with sufficient capital resources. Experienced hard […]

How Hard Money Lenders Determine Loan-To-Value Ratios

High interest rates are typically cited as the biggest downside to loans from private, or hard money, lenders; however, in actuality, reputable private lenders’ rates are usually not that far off from the long-term average rates for investment property mortgages. Furthermore, most private lenders offer interest-only payment schedules for the loan term, which is typically […]

4 Private Lending Myths Debunked

The myths about private lending are numerous and varied. The most prevalent is perhaps the misconception that hard money is so named because it is hard to get (in fact, it can be much easier and quicker to qualify for a hard money loan). Below we debunk four other common misunderstandings about private lenders and […]

4 Situations When Hard Money Loans Are Better than Traditional Commercial Loans

Hard money loans aren’t the answer to every deal, but they are the answer for some deals that are unlikely to come to fruition if you only seek financing from traditional lenders. Here are four common situations in which having a hard money lender in your financial toolkit can definitely pay off.  Purchases requiring a […]

Colorado Property Values Are on the Rise: What This Means for Your Property Taxes

According to the Colorado Division of Property Taxes, residential and business property values have experienced significant increases over the past two years (from June 30, 2012, to June 30, 2014). Residential property values are reported to have increased statewide by 14.3 percent, while commercial property values have gone up by 9.4 percent, industrial has risen […]

Increase in Bridge Loan Requests During Q1 2015

The first quarter of 2015 saw a huge increase in the demand for bridge loans as many borrowers trying to obtain commercial mortgages from traditional lenders encountered delays. In order to counter the obstructions from the banks, many are turning to bridge loans to provide the necessary short-term funds until long-term funding can get approved. […]

Update on Marijuana Banking in Colorado

When MBank announced in January that they would accept accounts from marijuana-industry customers, it briefly seemed as though the banking problems for the newly legal industry in Colorado might finally have a solution. However, that hope was quickly doused when, after only a week, they backed out of the Colorado market citing lack of infrastructure. […]

3 Common Bridge-Loan Scams that Borrowers Should Know About

Bridge loans have become an increasingly popular and essential segment of the lending industry, especially for those wishing to purchase commercial and investment-purpose residential real estate. This increase in availability has also brought about an increase in the number of loan scams, especially within the tightly controlled commercial lending sector. While loan scams have always […]

How to Negotiate With Your Hard Money Lender

Despite their name, working with hard money lenders can be much easier than with their conventional counterparts. The majority of these lenders are focused on bringing flexibility and transparency to their business deals as well as restricting the amount of red tape that borrowers have to deal with. Nonetheless, here are a few secrets to […]

Private Money in 2015: 3 Trends You Should Know About

With the new year now in full swing, there are three overall trends to watch for in the private capital lending market: An increase in commercial hard money loans. As the housing market settles into a state of equilibrium for the most part, it is likely that there will be an upswing in hard money […]