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Non-Recourse/No Personal Guarantee Loans

Unlike banks, institutional lenders and most other hard money lenders, Montegra is willing to consider non-recourse requests. These are hard money loans where there is no individual guarantee required and the only recourse is to the property itself.

Although most of our loans do require individual guarantors, if circumstances require a non-recourse loan, we are able to consider it. We funded a loan secured by a large warehouse property owned by a family limited partnership. The brother, who was the General Partner, only owned 15% of the partnership and was unwilling to guarantee 100% of the loan. The other family members owned the remaining 85% of the property but, because they were limited partners, could not guarantee the loan. Montegra's flexible asset based underwriting skills allowed it to fund this loan.

Non-recourse loans are typically funded at slightly reduced loan to value ratios and slightly higher interest rates and loan fees because of the increased risk factor of not having any personal guarantees with the loan. None the less, we are always willing to consider a borrower's request for this type of hard money loan.

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