Q: What is "private money?"
A: 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.
Q: Why use a private money lender?
A: 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.
Q: What are the advantages of using Mountain Capital for private money?
A: There are many advantages to using Mountain Capital for private money, including:
We can approve a deal and issue a funding letter in a matter of hours, instead of several weeks with a
conventional lender. We can close within a matter of days.
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 the Pacific Northwest better than anyone. We are experienced investors and lenders and
can help guide you throughout the process and avoid 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 and the viability of your project as opposed to credit score or the collapse of the
sub-prime market. When we show up at the table your deal gets done!
As a result of our extended experience making loans in the Spokane area, 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.
We have a list of as-is properties ready for rehab, which are pre-approved for financing.
We have a major understanding of the permit and construction process.
Q: How do you underwrite deals?
A: While underwriting is based on many factors and varies on a case-by-case basis, our general criteria include
Financially Successful Project
We want you to make money on the deal. If we think you can, we'll probably do the loan. If we thing you
can't, we'll tell you and we'll tell you why we thank you may want to reconsider doing the deal.
"Skin In The Game"
While we are eager to work with you and be a financial "partner" on your real estate investments, 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. 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.
Whether you're going to sell the property or rent and refinance, we want to make sure that you're
set up to succeed. We'll help you during the renovation process to make sure that you're going to
have a marketable product for sale at completion and can refer you to professional real estate agents
to ensure that you get top dollar on your investment. For rentals, we'll help you to optimize your rent
and put you in touch with commercial lenders who will help you refinance your investment once it is rented.
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