Frequently Asked Questions

Hard money, or sometimes called private money, is a term used to fund 'hard' to do or fast than normal bridge/construction loans local commerical banks cannot fund or would take too long to fund.  The term hard money is used because tangible "hard" assets are taken as collateral.  Due to short closing times, deal complication, or risk, hard money lenders can step in to provide construction or bridge loan funds where conventional lenders stumble.   Mountain Capital typically closes the borrower's deal faster than a bank because we have our own funds, create our own underwriting standards, and make our own local decisions with less 'red' tape.

Although private money lenders' rates and fees are typically higher than a local commercial bank, many times it is the availability of funds, not the cost, which is important to the private money borrower.  What is the use of cheap money if you cannot get your project funded?   Private money is meant to be short-term bridge financing to help you secure your deal, carry the deal during production or construction, and should be taken out relatively quickly replaced by longer-term cheaper money. 

The advantages are apparent: 

Fast Underwriting and local approval
Because we approve and fund most loans in-house, we can approve a loan and issue a funding letter in a matter of hours, instead of several months with a conventional commercial lender.  We can close within a matter of days.

Flexible Programs
You can use the equity that you have built up in other real estate to help you purchase and renovate your next project, instead of having to use large amounts of your own cash or waiting till your prior project sells to start another project or business.  Commercial Banks' underwriting standards typically frown on this practice.  Bonus:  Borrower's typically do not come with a great deal of cash at closing.  We know how to structure a deal to the benefit of all parties.

Experienced Matters
We know the Pacific Northwest better than anyone. We are experienced commercial real estate lenders.  We help guide you throughout the process and, more importantly, anticipate many pitfalls ahead of time.  We want to make money with you and be your lender of choice!

Access to Capital
Conventional banks are continually tightening their underwriting standards, making it difficult to impossible to approve the capital to fund your project.  Local banks have so much RED TAPE, they forget there is a borrower waiting to get a project started.   We are asset-based lenders who are focused on the real estate and viability of your project as opposed to a credit score, cashflow, or out-of-date regulations.  Not to toot our own horn, but, historically when we show up at the table, the  deal gets done!

Construction Projects
We have an indepth understanding of the permit and construction process and know how to underwrite construction deals for success and efficiency!   In-process projects....no problem.  This is another underwriting standard your local bank won't approve, but we will!

Industry Contacts
As a result of our extended experience making commercial real estate bridge loans, we have many industry contacts to help you along the way. We have pre-approved general contractors, closing attornies, and recommended real estate agents to help you maximize the value of your investment and avoid painful pitfalls along the way. 

While underwriting is based on many factors and varies on a case-by-case basis, our general criteria include the following:
 

Financially Successful Project
We want you to make money on the deal. If we think you can, we'll probably fund the loan. If we think you can't, we'll tell you and we'll tell you why we think you may want to reconsider doing the deal, or at least structure the deal differently. 

"Skin In The Game"
While we are eager to work with you and be a financial "partner" on your real estate project, it's your deal and you get the upside. We just get our money back plus fees and interest.  As a result, we need to be comfortable that you are motivated to see the project through completion and have the ability make the project profitable.  If you cannot, we would be doing the borrower a disservice funding the deal.  

Exit Strategy
One of our competitive advantages is our ability to use existing equity in borrower's additional collateral so that they don't have to come to the table with large sums of cash.  We also use interest reserves to help the project get off the ground and understand construction projects have, workable, but unforeseen hazards.  Whether you're going to sell the property or rent and cash out refinance, we want to make sure that you're set up to succeed.  We'll help you during the renovation process or business cycle to make sure that you're going to have a marketable product for sale at completion.