Author: Todd

Colorado Hard Money Custom Bridge Loans

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We are now offering bridge loans at competitive rates for up to 3 years.

Bridge loans can be on single family properties(non owner occupied), multi-unit buildings (2-40 units;non owner occupied), operating/occupied commercial properties, and operating/occupied industrial properties in the Denver Metro Area.

Typically up to 70% of the lower of cost and value (commercial and industrial typically only up to 60% of the lower of cost and value).

Call us (303) 500-3288
or
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Want a term sheet or to start the application process? Submit a Loan Inquiry (free)

Alternatives to Hard Money

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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.

10 Overlooked factors that can make the property less attractive to many buyers

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While not all Colorado hard money lenders may look this closely, the investor borrower can lose profits or even lose money when the after rehab value is lower than they expected. As a private Colorado Hard Money lender interested in having successful repeat borrowers, here are some of the factors that are frequently overlooked that may result in a lower after rehab value (i.e. sale price) that we consider in our after repair value estimate:

  1. Small first floor relative to other houses in the area (and comparable properties used for valuation)
  2. Low bedroom and bathroom count on the first floor relative to other houses in the area (and comparable properties used for valuation)
  3. Small master bedroom
  4. Relatively high traffic street where a family may be uncomfortable allowing children to play
  5. Nearby noise pollution (e.g. fire station within ¼ mile, close to a busy road, etc.)
  6. Visible eye soars from the property (e.g. direct views of trash dumps, industrial parks, etc.)
  7. Downwind issues (being close and downwind from trash dump, sewage treatment plant, factory, etc.)
  8. Being in flood plain or having bad drainage characteristics on the lot
  9. Garage or parking is not as good as the comparable properties used in the valuation
  10. Difficult to access (e.g. large blinds spots from driveways, steep drive ways, etc.)

This is not a complete list of all factors that may result in lower property value, but represents factors we frequently see overlooked.

DORA (Board Of Mortgage Loan Originators) Repeals Regulations On Business Purpose Loans

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Today at about 9:10AM M.T. the Board of Mortgage Loan Originators (under DORA) stated that they do not intend to challenge or appeal the court ruling that stated “……Board exceeded its statutory rule-making authority and Rule 1-1-6 is invalid.”. The Board then voted to repeal Rule 1-1-6.

Rule 1-1-6 essentially said that loans on all residential real estate would be regulated as a consumer “residential mortgage loan”. However the statutes stated a “residential mortgage loan” is for “personal, family or household use”. In essence the Rule would have prevented private lenders and even friends and family from making loans to businesses and people to invest in non-owner occupied residential real estate or at least force them to use a mortgage broker (who in all likelihood would charge fees) and require disclosures, processes and other regulatory acts that were intended for consumer loans and could complicate, increase cost and slow down the loan process.

Per all blog posts on the site the information provided should be considered is personal opinion. There are no claims, promises or guarantees about the accuracy, completeness, or adequacy of the information. None of the content should be considered a binding offer or agreement. Any terms or rates mentioned are subject change without notice. You are advised to seek outside professional advice before acting.