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MMG Capital

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What does MMG Capital look for?

One of the most common questions that we receive from both brokers and borrowers is "What's your niche?" or "What is your sweet spot?" We also commonly hear, "What property types do you have an appetite for?" The answer, unfortunately, isn't necessarily as simple as one would expect. Some lenders like office buildings in the Los Angeles area while some lenders like single family homes in South Florida. MMG Capital, on the other hand, is far more broad in scope when it comes to geography or property-type. We're willing to lend on them all and we're willing to do it nationwide. Rather than looking for a specific asset, MMG Capital looks for a specific situation: a well-secured loan.Basic Guidelines

MMG Capital actively seeks opportunities to provide capital to borrowers with the ability to appropriately secure our loan with valuable collateral. Acceptable collateral can come in many shapes and sizes, but each is evaluated differently based on type, location, and other prevailing market factors. Because of the flexible nature of our underwriting standards, it's impossible to put our loan products into a matrix or set of guidelines.  

Can you give me some basics?
As a rule of thumb, MMG Capital will lend a maximum of 50% of an asset's value, or 50% of the asset's price in the case of a purchase. There are exceptions to this, of course, in the case of cross-collateralization. The way that value is determined will vary, as will the actual amount that MMG Capital is willing to lend, based on the type of asset being pledged as collateral, its location, and other prevailing market factors. One thing is for certain: the more traditional the asset-type the more leverage MMG Capital will be willing to provide. Some lenders have chosen to assign Tiers to certain asset-classes while others have ruled certain asset classes out altogether. MMG Capital does neither of those things, and for good reason. We're willing to look at them all, and while some assets may be currently out of favor (i.e. raw land) they can still be approved under the right circumstances. 

What else is required besides a reasonable loan-to-value?

There are a few more things that MMG Capital looks for in loan prospects:

  1. A Reasonable Exit Strategy
Every borrower must have a reasonable plan to exit their loan within a specified time period. Short-term loans are never open-ended, and as a lender we're invested in the success of our borrower's project. Having a goal to reach is a necessary element to any plan. 
  1. A Verifiable Use of Funds
In other words, MMG Capital won't lend for the sake of lending and we expect that our borrowers won't borrow for the sake of borrowing. Like an exit strategy, how a borrower plans to use funds is an important piece of the puzzle. Certain loan structures are more appropriate depending on how the funds are going to be used, and knowing our borrower's plan allows us to structure the best loan possible to meet their needs.
  1. Ability to Document
Hard money loans don't require a lot of underwriting and qualifying. However, MMG Capital loans do require that borrowers document that the facts they present are true. 
 
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