Today we are talking with Bob Amter about private capital land loans. He has over 40 years of experience doing hard money loans.
Hello, I’m Bob Amter, the president of Montegra Capital.
Can you give us an example of a Montegra land loan?
In 2009, as the whole economic world was coming to an end – real estate values, stock values were declining – a borrower came to us and stated that their bank was ready to call their land loan. This loan was on a 20 acre assemblage they put together near Denver RTD station. They couldn’t loose this land.
How happened next?
Well the bank was under preassure from the Federal Reserve to call in all their land loans. I went out, looked at the land, and had it appraised. This particular parcel appraised at $3,000,000. In order to pay off the bank and save the property, the borrower needed to get a $900,000 loan. Yet, their bank was going to call it anyway. Montegra had no problem covering a $900,000 loan, secured by solely by the first mortgage on this land.
How did the situation play out?
Over the years the lands value increased, and we were willing to increase the principle on our land loan. Today, we have a loan of approximately $1.8 outstanding on this land. The extra cash enabled the developer to continue to move forward with his project. And, he has recently listed this project, which is a great multi-family land assemblage, for more than double the appraised value in 2009
And what was the result?
So from a $3,000,000 value in 2009, the value seemingly has increased to over $6,000,000 today. He is getting a number of interesting inquiries. We believe, and he believes, he is going to sell the property for over $6,000,000. He was able to make $3,000,000 using our land loan program.
What makes Montegra different?
We believed in him when banks and other traditional lender were not willing to make land loan, but we are.
Do you need a land loan in Colorado? Call Bob Amter or Kim Skari today!
This video is by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender. Bob has been in the private capital lending business for 41 consecutive years.
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