These stories are based on real loans made by Montegra to real borrowers who then made money in the method described by using our funds.  The actual writing has been done by Montegra.

After a long career of building casino properties for their owners, I decided to put my knowledge to work and get into the business on my own.  I identified a great property at a great price in a Colorado gaming area.  Even though I had good relationships with several banks none of them were willing to make a loan to me to acquire this property. Banks are strictly regulated by the Federal Reserve and funding casino properties is frowned upon. Additionally, the SBA has a specific prohibition against funding any casino loans.

My personal banker recommended I talk to Montegra and met with Bob. He was very responsive and open-minded.  He made a proposal to fund the acquisition of the property and include sufficient funds for the remodel to the properties new use.  Next, I had to go out to friends and family to raise the required 40% down payment.

The icing on the cake was that Montegra’s appraisal recognized the fact that my contract to buy the property was actually below its fair market value. Montegra was flexible and used the higher appraised value instead of the actual purchase price to compute their 60% LTV.  Banks are restricted by the Feds from doing this, but Montegra can (and was) flexible.  Getting some additional funds from Montegra’s hard money acquisition loan made a big difference.

Over the next few years Montegra raised their loan amount from its initial $2,000,000 to $3,500,000.  They worked with me all the way through the project to expand both the business and the amount of gaming space.  We are now, after all these years, able to get a bank take out for a great deal more than we owe Montegra.  The value of the casino business has gone from zero when we acquired the building to a multi-million dollar business.  None of this could have happened without our ability to get a private capital loan from Bob.

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender.  [google_authorship] has been in the private capital lending business for 41 consecutive years.