Frequently Asked Questions

Private money, or sometimes called hard money, is a term used to describe any financing option which is an alternative to commercial bank lending.  The term hard money is used because tangible "hard" assets are taken as collateral.  Due to short closing times, deal complication, or risk, private money lenders can step in to provide funds where conventional lenders cannot. 

Although private money lenders' rates and fees are typically higher than conventional lenders, many times it is the availability of funds not the cost which is important to the private money borrower. Private money is meant to be short-term bridge financing to help you get into a deal, carry the deal while you work on it, and should be taken out relatively quickly. 

There are many advantages to using Mountain Capital for private money, including: 

Fast Underwriting/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.  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 hard money lenders and can help guide you throughout the process and anticipate many pitfalls.  We want to make money with you.

Access to Capital
Conventional banks have tightened up on their underwriting, making it difficult to impossible to come up with the extra capital you need to get your deal done. We are asset-based lenders who are focused on the real estate, cashflow, and the viability of your project as opposed to a credit score. Not to toot our own horn, but, historically when we show up at the table, the  deal gets done!

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

Construction Projects
We have a working understanding of the permit and construction process and know how to underwrite construction deals for success!   

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.