It is important to us to act to ethically and feel good about our business; therefore we want our potential borrowers to carefully consider all their potential options before deciding if hard money loans make sense for them.
Common solutions that may be less expensive than hard money include (this is not a comprehensive list):
- Personal savings or personal investment accounts
- Self Directed IRA
- Home Equity Lines Of Credit (HELOC) or other loans based on a borrowers existing assets
- Friends & Family Loans
- Loans from traditional channels including national banks, regional banks, community banks and credit unions
When less expensive financing such as the above are not a good fit or will not work for reasons like the following:
- Insufficient personal funds (savings, investment accounts etc.) available or insufficient to pursue multiple projects at once
- Insufficient Self Directed IRA funds available or insufficient to pursue multiple projects at once
- Insufficient HELOC (or other loans based on a borrowers existing assets) funds or insufficient to pursue multiple projects at once
- Friends and family loans are not available
- Friends and family loans are not an option for personal reasons
- Traditional lenders can not make the loan fast enough to get the property
- Loan will not be approved because the borrower has too many loans or properties with loans
- Loan will not be approved because the property is not in habitable condition and requires repair
- Loan will not be approved because the borrower does not have sufficient income
- Loan will not be approved because the borrower has poor credit
- Other reasons make the alternatives unattractive or unavailable, but the property is good investment
Hard money loan may be a good solution. However hard money is typically a relatively high costs loan and typically does not reduce your risks or obligations.
We are the Colorado hard money lender for experienced investors™. We provide our borrowers with flexible, quick and direct service and have lower rates and fees (compared to other Colorado hard money lenders).
We are not attorneys, accountants, or professional advisors and we recommend you consult your own advisors before acting. We make no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information and none of the content should be advice or considered offer or agreement.