How much does an MMG Capital Loan cost?
To put it as simply as possible, MMG Capital Loans are right on par with what's standard in the private mortgage industry. Of course, in the world of private lending and structured finance there are hardly such things as "standard terms." Every borrower is different, as are every borrower's needs. When we find a deal that fits within our parameters we'll always do our best to fit our costs into the borrower's budget.
Keep in mind that because almost all private loans are unique, the actual pricing structure of certain loans will vary. For instance, a line of credit may be structured with an annual renewal fee. A project that is more speculative in nature may require higher fees and/or interest. Or, a borrower that isn't able to carry high cost debt for the duration of the loan term may elect to pay a lower interest rate in exchange for equity participation in the project. Our terms are as flexible as our loan structures, and many terms are negotiable.
What else do I need to know about MMG Capital Loans?
MMG Capital does not charge any upfront fees (See Article: Face Up to Upfront Fees). There is no charge for performance of due diligence, underwriting, etc. However, in the course of a private loan transaction there are almost always necessary third party fees. Although not typical, this may include an appraisal fee or charge for a broker price opinion. In almost all cases, borrowers will be required to provide a retainer for legal expenses.
Because MMG Capital's lending footprint spans from coast to coast, every MMG Capital Loan requires the expertise of local, third party counsel. Third party counsel will be responsible for nearly all legal functions including drafting of loan documentation, title review, closing coordination and recording. This legal retainer is fully refundable should the loan not fund at the fault of MMG Capital. Any unused portion of the retainer is credited back to the client at closing.