FAQs

  1. What type of lender is MMG Capital? 
  2. Is there any difference between a private lender and a hard money lender?
  3. What types of loans does MMG Capital fund?
  4. Do you need to verify personal income and check credit?
  5. What are your rates and terms?
  6. What is your turnaround time?
  7. What fees are involved?
  8. Do you charge upfront fees?

What type of lender is MMG Capital?
There are a number of different terms that can be used to describe the type of lender that we are. The most common terms are "private lender" or "hard money lender." When describing the way that we underwrite loans, it's also appropriate to use the terms "asset based lender" or "collateral based lender." 

Is there any difference between a private lender and a hard money lender?
We like to think so. The term "private lender" is becoming more common in the mortgage industry and it describes all non-traditional lenders that underwrite loans outside of common guidelines. The term "hard money lender" was used more commonly in bull markets to describe lenders that would lend at a defined loan-to-value with few other questions asked so long as an appraisal would support the given value. Private lenders operate under very different circumstances and are far more flexible than hard money lenders. However, the two terms are used somewhat interchangeably in the mortgage industry at this time. 

What types of loans does MMG Capital fund?
We fund a variety of types of loans on a variety of different property types (and alternative assets). We also provide financing for a variety of different reasons. However, there are several common characteristics that all MMG Capital loans share. They are: low loan-to-value, short-term, and high net worth borrowers.

Do you need to verify personal income and check credit?
No, looking at tax returns and credit reports is reserved for the bank. As a private, collateral based lender we're more concerned with equity and net worth than we are with personal income or a borrower's credit score. 

What are your rates and terms?

There's no simple answer to that question because the cost and terms of MMG Capital Loans can vary drastically. We've outlined where the bulk of our loans fall in the section titled "What's the Cost?" However, we're not a one-size-fits-all lender and therefore typical rates and terms may not fit certain scenarios. Not only can rates, fees, and terms be longer or shorter but there's also potential for the addition of equity participation (or equity kickers), deferred costs, prepaid interest or reserves, and credit lines. 

What is your turnaround time?

The actual time that it takes to fund a loan can vary anywhere from a week to about four weeks. The size of the loan, location of the collateral, complexity of the transaction, certain regulations and restrictions, third party activities and certain unforeseen complications will all affect the amount of time required to get to the closing table. On average, an MMG Capital Loan is funded two to three weeks from the time that a signed Letter of Intent is received from our borrower. 

What other fees do you charge?

MMG Capital does not charge any fees beyond typical Lender Loan Points. There are no fees for underwriting, processing or any other in-house functions. 

Do you charge upfront fees?
No, MMG Capital has never and will never charge an upfront fee. We were featured in The Scotsman Guide in 2010 for our article titled "Face Up to Upfront Fees."