FAQ

Private Lending, Explained

Everything you need to know about hard money and bridge lending in Montana — from rates and collateral to funding speed and loan structure.

Private Lending Basics
Hard money lending — also called private lending — is asset-based financing where the loan is secured primarily by real property rather than the borrower's credit profile. Unlike conventional banks that rely heavily on income verification, credit scores, and lengthy approval processes, private lenders evaluate the collateral value, the borrower's equity position, and the viability of the project. This allows for faster closings, more flexible terms, and the ability to fund deals that traditional lenders cannot or will not consider. Renegade Capital is a Montana-based direct private lender — we use our own capital, which means faster decisions and no committee delays.
Our average funding timeline is 10 business days from completed application to closing, though we have closed deals in as few as 5 days when the borrower has their documentation organized and the collateral is straightforward. Speed is one of the primary reasons borrowers choose private lending — whether you are competing on a time-sensitive acquisition, need to close before a deadline, or are refinancing out of a distressed situation. We control our own capital and underwriting, so there is no waiting on bank committees or third-party approvals.
The terms are often used interchangeably, but there is a subtle distinction. A bridge loan is short-term financing designed to "bridge" a gap — for example, acquiring a property before selling another, or securing a deal while arranging permanent financing. A hard money loan is any asset-based loan from a private lender, which may or may not serve a bridging purpose. At Renegade Capital, most of our loans function as bridge financing with a clear exit strategy, whether that is a sale, refinance into conventional debt, or project completion. We structure every deal around a realistic exit timeline.
Rates, Terms & Structure
Our rates typically range from 10% to 14% depending on the loan-to-value ratio, property type, borrower experience, and deal complexity. Rates are quoted as annual rates. While higher than conventional bank financing, our rates reflect the speed, flexibility, and certainty of execution that private lending provides. Many borrowers find that the cost of capital is far less than the cost of a missed opportunity or a deal that falls apart due to slow bank processing. We are transparent about pricing — there are no hidden fees or surprise adjustments at closing.
All Renegade Capital loans use an Actual/360 day count convention with daily balance accrual. This means interest is calculated based on the actual number of days in the period divided by 360 days. For example, on a $200,000 loan at 12%, the daily interest rate is 12% / 360 = 0.0333%, which equals $66.67 per day. This is the standard method used by commercial lenders nationwide and is disclosed clearly in every loan agreement. For construction and renovation loans with draw schedules, interest accrues only on the funded (drawn) balance, not the full commitment amount.
We lend up to 70% of the as-is appraised value or purchase price, whichever is lower. For experienced borrowers with strong collateral, we may consider up to 75% LTV on a case-by-case basis. Our conservative LTV approach protects both the borrower and lender — it ensures sufficient equity cushion in the deal, which translates to better terms and a stronger position if market conditions shift. All of our loans are secured by first-lien position on the collateral property. We require 100% first-lien collateral coverage on every deal.
Our standard loan terms include a minimum interest period, typically 3 to 6 months, which means you pay at least that amount of interest regardless of when you pay off the loan. After the minimum interest period, there are no prepayment penalties — you can pay off the loan at any time without additional cost. We structure our loans this way because we want borrowers to execute their business plan and exit on their timeline. Early payoff is a sign of a successful project, and we do not penalize success.
Our typical loan range is $50,000 to $1,000,000. We focus on the $200K to $1M gap in the Montana market — deals that are too small for institutional capital but too large or complex for traditional community banks. For larger deals above $1M, we can structure participation arrangements with other capital partners while maintaining a single point of contact for the borrower. Minimum loan amounts below $50K are generally not cost-effective for either party given the fixed costs of origination, appraisal, title, and legal work.
Collateral & Requirements
We lend against improved and unimproved real property in Montana, including commercial buildings, investment residential properties (non-owner-occupied), raw land, mixed-use properties, and special-purpose properties. Our primary requirement is a first-lien deed of trust on the collateral. We do not lend against personal property, equipment, or inventory — real estate only. Each property is evaluated on its own merits, including location, condition, marketability, and the borrower's intended use and exit strategy.
Yes, all Renegade Capital loans require a personal guarantee from the principal borrower or borrowers. Even when lending to an LLC or other entity, we require the managing members or controlling principals to personally guarantee the obligation. This aligns interests and ensures the borrower has meaningful skin in the game beyond the collateral property. The personal guarantee covers the full loan amount, accrued interest, and any costs of collection. In participation structures, our guarantees are non-recourse to the participants — the guarantee runs to Renegade Capital as the lead lender and servicer.
Our application process is streamlined compared to conventional lending. We need a completed loan application, a summary of the property and your business plan or exit strategy, recent bank statements (2 to 3 months), a personal financial statement, entity documents if borrowing through an LLC, and the purchase contract or property details. For refinances, we also need the current loan payoff statement. We do not require tax returns or extensive income documentation in most cases — our underwriting focuses on the collateral value and your equity position rather than traditional income qualification.
Renegade Capital provides business-purpose loans only. We do not originate consumer-purpose or owner-occupied residential mortgages. Our loans are structured for investment properties, commercial acquisitions, business-purpose bridge financing, and renovation projects where the borrower does not intend to occupy the property as their primary residence. Owner-occupied residential lending is regulated under different consumer protection frameworks (TILA, RESPA, Dodd-Frank) and is handled by our sister company, Renegade Mortgage, which is a licensed Montana mortgage brokerage.
Process & Servicing
For construction and renovation projects, we structure loans with a draw schedule that releases funds in stages as work is completed. The borrower submits a draw request with documentation of completed work (photos, contractor invoices, inspection reports), and we release the next tranche of funding — typically within 2 to 3 business days of approval. Interest accrues only on the amount actually drawn, not the full commitment. This protects both parties: the borrower pays interest only on capital in use, and the lender verifies that funds are being deployed according to the project plan. Draw inspections may be required for larger releases.
We work with borrowers who communicate proactively. If your project timeline has shifted or your exit strategy needs adjustment, contact us before the maturity date. In many cases, we can offer a loan extension or modification with updated terms. We are a relationship lender, not a predatory lender — our goal is a successful outcome for both parties, not a foreclosure. That said, borrowers who stop communicating or fail to make required payments will face late fees, default interest provisions, and ultimately foreclosure proceedings as outlined in the loan documents. The best protection is honest communication and a realistic business plan from the start.
Currently, Renegade Capital focuses exclusively on Montana properties. We know the Montana market deeply — property values, local market dynamics, county-specific regulations, and the economic drivers across the state. This local expertise is a competitive advantage for our borrowers and allows us to make faster, more informed lending decisions. We evaluate every deal with direct knowledge of the local market, which means better underwriting and fewer surprises for everyone involved.

Still Have Questions?

Every deal is different. Reach out to discuss your specific scenario — we will give you a straight answer on whether we can help and what it will cost.

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