During this current economic cycle, Mountain Real Estate Capital’s focus is in making opportunistic equity investments and acquisitions for long-term holds and attractive rates of return. However, Mountain will consider certain debt or preferred equity positions as described below.

High-Yield Participating Loans
Mountain Funding will consider senior debt scenarios where the contract interest and fees are 15%-20%, plus Mountain will participate in potential additional upside profits. This structure potentially works well in situations where a developer has an opportunity to purchase his existing bank loan at a significant discount and needs a flexible new capital source to finance the new business plan.

Preferred Equity
In certain workout situations where a developer has an opportunity to restructure his existing loan to a lower balance in exchange for new equity contributions to be used to further pay down the debt and/or complete the project, Mountain can contribute that equity subordinate to the senior lender but in a preferred position to the developer. As equity, Mountain’s return targets would normally exceed 25%.

Bankruptcy DIP Loans for Stalled Products
For stalled projects where funding has dried up, Mountain Funding can lend additional capital for everyone's benefit.  Specifically, Mountain's Project Rescue & DIP Loans will:
• Fund priming DIP loans and bankruptcy plans (MF to be in the senior position)
• Finish construction or entitlement
• Continue interest payments
• Cover operating expenses including taxes, payroll, utilities, insurance, HOA dues and marketing
• Avoid premature discounted sales and write-offs
• Provide time to effectuate a repositioning plan or to simply wait for recovery