Merchants Mortgage & Trust Corporation

About Merchants Mortgage & Trust Corporation

Based in Greenwood Village, CO, Merchants Mortgage & Trust Corporation is a private lender providing loans in 9 states throughout the U.S. They offer lending solutions for a variety of needs and situations, including hard money loans for commercial properties, fix-and-flip loans, loans for rental properties, and construction loans. They issue loan amounts ranging from $250,000 to $4,000,000 with a maximum LTV of 75%, rates from 9.5%, and terms between 6 and 24 months. . They make loans on various property types, including single family residences, multi family, apartment buildings, offices, retail units, hotels and motels, storage buildings, mixed use spaces, warehouse buildings, and industrial buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical

Areas Served: AZ, CA, CO, KS, MO, TX, UT, OR, WA

Lending Guidelines for Merchants Mortgage & Trust Corporation

Below are the general loan guidelines published on the Merchants Mortgage & Trust Corporation website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Merchants Mortgage & Trust Corporation.

Loan Example 1

Merchants Mortgage & Trust Corporation makes a fix-and-flip loan to Dena for a remodeling project in Houston, TX, on a property that costs $230,000. Since the lender sets a 70% loan to value, Dena will be required to put 30% down and the principle amount of the note will be $161,000. The note is interest-only, paid monthly, and is for 12 months at 11% interest with 3 origination points paid at closing.

Dena will have to fund a total of $32,400 upon closing to cover the $69,000 down payment in addition to the $4,830 origination fee. Once the deal closes, she will pay Merchants Mortgage & Trust Corporation $1,476 in monthly interest fees, or 11% times $161,000 divided by 12 months in the year. If Dena accomplishes her goal of a $287,500 total sales price when the loan expires, she would collect a gross profit of $34,960 after re-paying the principle on the note and subtracting the cash she paid at closing, the origination points, and the monthly interest payments.

Loan Example 2

Ruth is a real estate investor in Houston, TX. She buys a run-down townhouse for a renovation project and takes a hard money loan from Merchants Mortgage & Trust Corporation with the following features:

$330,000 sales price
55% loan to value (LTV)
12 month term
12% interest rate
3% origination fee

Ruth intends to list the project at the end of the term for $462,000. If she succeeds, the outcome would be as follows:

$462,000 sales price
- $181,500 loan principle (55% LTV)
- $148,500 down payment (45% on 55% LTV)
- $5,445 origination fee (3% of the $181,500 principle amount)
- $21,780 total interest paid (12 months x 12% interest)
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= $104,775 gross profit (does not include taxes or renovation costs)

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