Montegra’s reputation as the oldest and most reliable Colorado hard money lender is based on our flexibility to fund loans on all types of commercial and residential investment real estate. Please remember that we are not able to fund second position mortgage loans. We only fund first position loans on all property types.
With each property type, Montegra Capital’s hard money lending process offers different lending options to accompany the unique aspects associated with it. This ranges from higher loan to value ratios to certain restrictions. All of this is designed to assist communication between your commercial hard money lender and yourself, the borrower.
Income Producing Properties:
Multi-Family Property: Montegra Capital offers first mortgage loans for acquisition or cash out refinancing on multi-family properties. Our cash out program funds loans up to 75% of appraised value. Additionally, when the buyer gets a contract for purchase at below market value, our Smart Buyer Loan Program will fund loans up to 85% of purchase price.
In those instances when a multi-family property has high vacancy rates and is in need of rehabilitation, Montegra’s hard money lending program is fully equipped to work with the buyer or owner to create an interest reserve and provide funds for renovation costs until the property reaches a stabilized value.
Warehouse and Industrial Properties: Warehouse and industrial properties are a valued part of Montegra’s flexible lending program. Multi-tenant warehouse properties and non-owner occupied industrial properties are among the various property types we are happy to consider. High vacancy rate properties may be considered for funding with an interest reserve to cover debt service until lease up is accomplished.
Retail Properties: Montegra is willing to underwrite loans secured by non-anchored retail shopping plazas. We are also open to considering retail properties with higher than typical vacancies if there is a plan in place to lease up the vacant space. Funds for interest reserve and tenant finish during lease up may be available on a case by case basis. Loans are made at up to 65% of appraised value.
Office Properties: Both office buildings and office condos qualify for Montegra’s hard money loan program. Loans are available up to a maximum of $2,500,000 in size and up to 65% loan to appraised value. The borrower must have experience in office management and be able to demonstrate the ability to pay for required tenant finish and real estate brokerage commissions while stabilizing the property.
Resort Properties: Montegra has a long history of funding resort property loans in premier Colorado resorts like Aspen, Vail and Telluride. Private capital loans are available for acquisition or cash out refinance on condos, houses, and buildable lots. Loans on condos or houses are available only on real estate that is an investment property. In other words, the real estate is not being used as the owner’s primary residence and was purchased for making a profit.
Montegra will consider loans of up to 65% of fair market value on resort properties. These loans, as are all of Montegra’s loans, are payable interest only with no amortization required.
Foreign national buyers of resort properties are eligible for our resort property loans. Buyers or existing owners do not need to have a green card to qualify for loans from Montegra Capital.
Residential Investment Property:
Hard money loans are available for residential property of 1 to 4 units where the purpose of the loan is a business purpose. Examples of residential investment (business purpose) property loans are buying a house to “fix and flip”, buying or refinancing a rental home, buying or cash out refinance of a duplex, triplex, or fourplex (where the owner does not live at the property). Examples of a “consumer” loan would be cash out refinance of an owner occupied home where the money is being used for a personal purpose such as paying off credit card debt. Montegra does not underwrite or fund consumer loans.
Montegra is willing to consider fix and flip loans but only in the case where the loan amount is over $250,000. This would require the value of the property when sold to be over $400,000. Fix and Flip loans under this $250,000 minimum limit are not financed by Montegra Capital.
Acquiring Raw Land:
Montegra Capital Resources, LTD is one of the few Colorado hard money lenders willing to consider land acquisition loans. Land that is eligible for consideration must be zoned with entitlements in the Denver metro area. Borrowers who recognize this great opportunity to acquire land at record low prices are welcome to contact Bob or Kim to discuss their potential land purchase. However, the borrowers must have skin in the game to qualify for our acquisition program. Loan to value ratios of up to 60% are available to qualified borrowers on a case by case basis.
Ground Up Construction:
Montegra does not fund ground up construction loans or infrastructure development construction loans.
We will consider funding a loan for the purpose of finishing a small portion of the construction where the initial construction loan did not provide sufficient funds to finish and the initial construction lender will not provide the additional funds required.
For example, a spec home builder takes out a construction loan of $500,000 to build a house (to be sold) with a final estimated value of $850,000. The $500,000 construction loan amount is used up and the house still requires an additional $100,000 to finish. The initial lender (typically a bank) will not advance additional funds to complete the construction. Montegra will consider funding a new first mortgage construction loan of $600,000 to finish the property. We do not fund second position mortgage loans.
Construction “Take Out” Projects:
Montegra is willing to consider select take out Commitment Letters on construction loan applications on all types of improved properties that are being built, or may be built, with traditional bank or institutional financing. Our take out loan Commitment Letter will guarantee to close and fund when the property has a Certificate of Occupancy and the appraised value is confirmed. Length of construction typically must be less than one year.
Montegra Capital is committed to remaining flexible in its loan underwriting standards to emphasize getting the Borrower’s loan closed. We do not have bureaucratic restrictions or loan committees that stand in the way of funding loans. Our goal is to fund your loan with as little red tape as possible in a timely manner.
