Private Party Lending:
In 2008 when the banks found themselves in a financial trap, Split Mountain LLC saw an opportunity. Solid loan applications were being turned down by traditional lending institutions leaving open the possibility that these loans could be funded through Split Mountain LLC. Over time non-bankable loans have become an increasingly important part of our business. If you are interested in obtaining a loan from us please read the following Frequently Asked Questions before contacting us:
•Should I contact you or a bank for my loan?
If you can obtain financing from a traditional bank you should consider doing so. In general, our interest rates are higher than what you would pay at a bank.
•How much collateral do you require?
The value of your collateral is of the utmost importance and should far outstrip the dollar value of your proposed loan. Ask yourself: If I were to default on this loan would Split Mountain see a substantial profit? The answer should be an unqualified, Yes.
•What size loans do you do?
We generally will not consider loans for less than $500,000 and not more than $3 million.
•Will I be required to sign personally for this loan?
Yes. If you do not believe in your loan’s merit then we don’t either.
•What will the loan application process be like?
Because we are not a bank you will not find yourself in the middle of a bureaucratic hell storm with endless demands for useless bits of paper and ever shifting requirements. Many of our clients have chosen to work with us simply because we don’t give them migraines and don’t overload their fax machines.
•Will you consider doing loans outside your home state of Colorado?
Not at this time.
•Why have I never heard of you?
We don’t advertise for the simple reason that we don’t need to. Word of mouth from our clients to our clients associates has been more than sufficient to grow our business.
•How do I begin the application process?
Send an email to Erik@SplitMountain.com with the general outline of your proposal. Be sure to include: How much you want to borrow. What interest rate you feel you should pay and what repayment terms you would prefer. Remember that riskier loans need to compensate us with higher interest payments. The collateral you will post. Personal guarantees are absolutely necessary but not sufficient alone. In addition to your personal guarantee we need collateral without legs, wheels or other methods of going walkabout; real estate works great. A general description of your business plan and how the money will be used.
If we like the outlines of your application we will contact you for either a cup of coffee or a beer so that we can sit down together and begin to flush out the details of your proposal.