How does MMTC compare to hard money lenders?
Some hard money lenders may be willing to lend 100% of the purchase price of the property if the property is being purchased significantly below market value; whereas at MMTC we do require a downpayment a/k/a some skin the game so to speak. As a result, our rates and fees tend to be much less than those of private-money lenders. We are often around 12% on rate and 1.5% on fee whereas many hard-money lenders are at 14% on rate and 4% on fee or more. But, it depends on the investor and their qualifications and the particular property as to what type of financing will be best suited to them. We tend to attract high quality borrower who have some money to put down and need an investor fix-and-flip loan and seek reasonable rates and fees. We allow a variety of sources to be used for the downpayment such as home equity lines of credit, funds from partners, cross-collateralization whereby with borrowers consent we may be able to take a lien on another property already owned to cover the downp
