What a Hard Money Lender Should Be – Tips from a Colorado Private Money Lender

What a Hard Money Lender Should Be – Tips from a Colorado Private Money Lender

Quickly Close Your Deal

Close in as little as 7 days.

Trusted Hard Money Lender

Over 53 years of lending success.

Flexible Lending Options

Solutions for all situations.

Know What They Do and Do it Better Than Anyone Else

Good private money lenders know exactly what type of loans they will consider and what they won’t consider. Too many private money lenders say they can fund almost any loan under the sun. False statements like these waste borrowers’ time and can cause missed opportunities through false hope. Montegra offers Colorado commercial real estate loans. Let’s narrow this down a bit. Montegra considers loans institutional lenders won’t. When occupancy rates are below bank underwriting standards… when a former bad deal tarnishes a borrower’s credit history… when a borrower need cash fast to capitalize on an opportunity… when foreclosure is eminent… Montegra is willing to tackle difficult lending situations and do it better than any other Colorado hard money lender.

Up Front and Transparency Regarding Lending Fees and Rates

Far too often private money lenders are willing to engage in the old “bait and switch” game. This is a significant danger for a borrower, and the borrower needs to be cautious. Get your loan terms in writing. Use an attorney to represent you when you negotiate a commercial real estate loan with any private money lender. Montegra puts everything in writing from day one. This is the gold standard. Don’t deal with hard money lenders that will not do this. Be aware that there are private money lenders that have a habit of taking large up-front fees for “due diligence” when they know the deal flat out can’t be done. To help you avoid this very dangerous practice, we suggest dealing with a lender from your area – not an out of state lender. Check references from your advisors (attorneys, accountants, real estate Brokers, etc.). Due diligence up front is vital to avoid expensive mistakes. Check a private money lender’s website for negative comments and reviews. We don’t want to blow our own horn, but choosing Montegra as your Colorado hard money lender is a smart thing to do!

What to do if a borrower encounters difficulties in their hard money loan:   Communication – Communication – Communication.

Obviously, once a loan is closed, the ideal situation would be to make the payments and move on to the next deal. This is usually the case, but what about when things don’t go as planned? The earlier you open communication, the faster a reasonable solution can be found. This is a reciprocal process, a discussion, which leads to agreements rather than lawsuits and foreclosure.  If you have chosen the right private lender, then the lender does not want to own property – and will typically do so only as a last resort.  Unfortunately, bad things can happen to good borrowers. Begin the conversation with your hard money lender today. If they don’t want to talk to you, it might be time to find people who do.

[google_authorship], because of his more than 40 years of experience in funding hard money loans, is considered an authority on hard money or bridge financing.  He frequently speaks at meetings and conferences and writes articles on these subjects.