Cash Out Bridge Loans
Cash Out Bridge Loans
Close in as little as 7 days.
Over 53 years of lending success.
Solutions for all situations.
It is very rare that banks and other institutional lenders are willing to allow borrowers to increase their loan amount (or take out a new loan from the property’s equity) on commercial property unless all of the new funds will be used to improve that particular property. While banks are wary of the increased risk of this type of bridge loan, often called a cash-out loan, Montegra believes that borrowers should be trusted to decide how and where funds obtained from the equity in their commercial properties are spent.
Montegra is an asset-based, private capital bridge lender with a 50-year history of funding first-mortgage, secured loans on commercial and investment-purpose residential property located in Colorado (especially the Denver metro area). Montegra funds loans from $250,000 to $4,000,000 for short-term (one- to three-year) time periods with interest-only payments typically for up to 65% of a property’s appraised value.
Things To Consider With Colorado Hard Money Acquisition Loans
As is the case with any real estate transaction, hard money acquisition loans carry some elements of risk. Before applying for one, you should think carefully about a few key points:
- Interest rates. Because they’re short-term and rely less on credit scores and other personal financial data, hard money acquisition loans have somewhat higher interest rates than traditional mortgages. Montegra’s rates for hard money loans start at 10.25%, with typical loan fees between 1.5% to 2.5% depending on the loan term. Factor in these costs when you map out your repayment budget.
- Term of loan. Hard money loans (sometimes called bridge loans) normally have terms between 12 months to 24 months. Montegra offers its borrowers the option to renew their loan after the expiration of its initial term.
- Down payment. Hard money loans typically require a larger cash down payment than bank loans. This is why they can close much more quickly, and offer more flexible terms to their borrowers.
- Property risk. Both hard money loans, and bank real estate loans, use the real estate you’re acquiring as collateral. Since your loan is secured by property, no matter which lender you choose you always have the risk of losing your property if you default on repaying a real estate collateralized loan. Think carefully about whether or not you’re willing to accept that risk. If you are not willing to accept this risk then your only option is to pay 100% cash for your real estate purchase.
The Top Source For Denver Hard Money Acquisition Loans
Montegra Capital Resources is Colorado’s most trusted hard money lender. Our business approach is based on quick approvals and funding, fair and reasonable interest rates and loan fees, total transparency, and no surprises. We’ve helped local real estate investors and companies for 50 continuous years with creative solutions to their short-term capital needs. Contact us today for more information about our hard money lending services.
What Information Should You Include In Your Request?
You can speed up your loan request by providing Montegra with the following information:
- What is the property’s address?
- What type of property is it?
- What are your plans for the property once you purchase it (i.e., hold onto it long-term or fix it up, retenant and resell it)?
- Do you have an executed purchase contract for the property? (If so, please submit a copy with your request.)
- If you have signed a contract to purchase the property, when is your closing date?
- What do you believe the fair market value of the property to be today?
- How much cash are you willing to use as a down payment on the property?
- What amount of money do you want to borrow?
We will also need other routine personal financial and credit information to complete the application process, but we would like to begin by gathering the basics about the property and your plans for it to better understand what you would like to accomplish and how we can best help you achieve those goals.
See our recent closings for examples of how Montegra helped other borrowers close their acquisition loans and realize their projects.