Colorado Auction Loan – Video Blog
Hello, I’m Bob Amter, the president of Montegra Capital. We are a Denver based private capital lender, sometimes called a hard money lender. We are a direct lender. We have the money, we make the decision, compared to a loan broker. Let me talk to you about a new loan program we have introduced that seems to be creating a great deal of interest in the Denver area. This is helping to raise capital for commercial properties and residential investment properties at auction. Auctions are becoming a serious force in both the commercial and residential markets.
The good news about auction is they can help the buyer find properties through a national search. Lets say you are from New York City and you want to buy something in Denver, those properties can be fairly easy to identify. It helps the seller with exposure and selling time of the property. The problem is that you can purchase a property, then have only 30 days to bring in all the cash and close.
Even though there are a couple weeks prior to inspect the property, by the time you figure out you want to make a bid or win the property, you now only have a couple of weeks to close financing. Banks and most institutional lender will not be able to act quick enough to close the loan in thirty days. Montegra can.
If you are the winning bidder on a $1 million property with 30 days to close, lets say you have $400,000 in cash and are unable to come up with the rest, you will get penalized by the auction company and lose some of your earnest money. If you come to Montegra with a heads up, we can begin underwriting the property to easily meet the 30 day required time frame.
You may be able get a great buy at auction, save money on transition cost, and have a loan with Montegra liberal pre-payment arrangement so you can go out to lease the property, what ever you need to do. Then, take another 3, 6, or 9 month to secure more traditional financing and pay of your bridge loan. You’ve got the property and you’ve got traditional financing. That could be a win, win situation for everybody.
Contact Montegra today!
This video is by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender. Bob has been in the private capital lending business for 41 consecutive years.