MCG

About MCG

MCG is a hard money lender based in Feasterville Trevose, PA providing loans across the US. They provide hard money loans for commercial properties, refinancing, short term bridge loans, and builder loans. They offer loans on all of the following types of properties: multi-family units, apartment buildings, office buildings, retail storefronts, hotels, storage facilities, senior living communities, mixed use buildings, undeveloped land, churches, warehouse buildings, industrial buildings, and medical facilities.

Loan Types Offered: Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: National

Lending Guidelines for MCG

Below are the general loan guidelines published on the MCG 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 MCG.

Loan Example 1

Sonya is an entrepreneur in Spring, TX. She wants to acquire a new office building for her company but she is not able to get a conventional mortgage loan from her bank because of her low credit rating. She turns to MCG for a commercial private money loan to close the purchase. The list price of the property is $290,000 and the lender agrees to contribute 75% of the purchase price (the loan-to-value / "LTV"), or $217,500. The other $72,500 will have to be paid by the borrower when the deal is closed. The lender additionally lays out the following terms to the transaction: 1) a 8% rate of interest, 2) a 18 month term with interest-only payments monthly, 3) an origination fee of 1 percent paid by Sonya at closing, and 4) no fees for pre-payment. By the parameters of this deal, Sonya will have to pay origination points of $2,175 when the deal is closed. She will also begin to make payments of $1,450 / month throughout the duration of the loan and will repay the principle amount at the end of the 18 month term. If she decides to pay back the loan early, she may do so without additional cost because there is not a pre-payment penalty attached to the note.

Loan Example 2

Marion locates a duplex in Milwaukee, WI to renovate and resell. Since he does not have enough cash to buy the property outright, he takes a private money bridge loan from MCG with the following parameters:

$240,000 sales price
80% loan-to-value (LTV)
12 month term
11% rate of interest
1% origination fee

If Marion accomplishes his goal of a $324,000 sales price, the outcome of the deal will be as follows:

$324,000 sales price
- $192,000 principle (80% LTV)
- $48,000 down payment (20% on 80% LTV)
- $1,920 origination points (1% of the $192,000 principle amount)
- $21,120 total interest paid (12 months x 11% interest)
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= $60,960 total profit (doesn't include taxes or rehab costs)

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