Frequently Asked Questions

Want a term sheet or to start the application process? Submit a Loan Inquiry (free)
This website contains general loan guidelines. This website does not provide loan offers. Loan documents contain a complete set of terms and conditions for a loan. Terms may vary by properties and borrowers. See the Terms of Use and F.A.Q. for important information. Good Funds Lending, LLC provide hard money loans for investment properties in the Denver, Boulder and Colorado Springs areas.
Application (8)

There are several reasons why a business might want a bridge loan while waiting for a bank loan. Sometimes a transaction needs to happen quickly or the business owner needs liquidity quickly, but the bank needs more time to process the loan. Sometimes a bank can’t provide the loan until more time has passed after a credit or income hiccup.

In a full loan application for one of our Colorado hard money loans we require:

Materials required depend somewhat on the type of loan and type of property.
For a rehab loan on a single family, the following items would likely be required:

  • Completed loan application form
  • Rehab items/budget (Schedule of Work – we can provide a template, other formats may also be acceptable)
  • The real estate purchase agreement contract (and all disclosures, addenda and amendments)
  • Acceptable proof of past rehab experience (items may vary).
  • Copies of recent tax returns & IRS form 4506T which allows us to obtain an official copy form the IRS for verification [income amounts are not important, primarily verifying identity]
  • Under certain circumstances, we may require special inspections or reports (e.g. suspected structural or mold issues, well or septic system etc.) prior to a loan commitment decision. Sewer scope reports are often required for homes built prior to 1982 or built in certain areas. Asbestos tests and report are commonly required, but depend on the scope and type of repairs/renovations. Additional documents are likely to be required if the property will be occupied at the time of purchase or there is a non arms length transaction.

At some point prior to a loan commitment we need to meet all signers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

For a pre-approval application (for a pre-approval letter), we simply require a pre-approval application and id verification through an person meeting.

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com.
We may as it is important to us to know if borrowers are in trouble. We may not look at credit history for every loan with repeat borrowers (We do not pull credit reports for pre-approval applications). We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors.

Our typical hard money loan process follows the the process linked here. Start the process by submitting a Loan Inquiry.

As a direct private Colorado hard money lender we conduct our own valuation analysis (for residential properties) and we are not required use a 3rd party appraiser as hard money lenders that have outside investors may be required to do. There is no additional charge for the valuation/appraisal for residential properties, as we perform our own internal valuation for our internal purposes only and we do not make any representations or warranties related to our valuation. For properties for uses other than residential (e.g. office, retail, industrial), we typically do require a 3rd party appraisal, which the borrowers are required to pay for.

Category: Application

Yes, if we pre-approve the loan after reviewing a free pre-approval application (remember a pre-approval is not a loan commitment).

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com (and avoid hard credit checks).
It is important to us to know if potential borrowers are in currently in financial trouble. We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors. We will typically review credit history for each human borrower. We are not looking for a minimum credit score, but will evaluate recent credit history focusing primarily on the following aspects:

  • Related recent bankruptcies
  • Related recent foreclosure proceedings
  • Judgments
  • Recent history of late payments
  • Currently owed payments that are past due

We look at the each loan as a whole package including the asset, the borrowers and the market.

(Good Funds Lending, LLC provides hard money loans in the Colorado Denver Metro area)

For the pre-approval application, we will perform a cursory evaluation of your financial estimates for the project (purchase/acquisition cost, rehab budget, after repair value), and your level of experience and your answers to few other questions. If we believe there is a reasonable likelihood that we would make a loan based on the information provided, we will inform you that you are pre-approved. If approved, and you request a pre-approval letter (Often pre-approval letters are submitted with offers on properties; however, some borrowers may choose to complete a pre-approval application after the property is under contract). A pre-approval is not a guarantee that the loan will be approved or made.

For the full application you provide more details regarding the project and your experience. We more carefully review the borrowers and project. We evaluate the current and after repair value of the property and closely review the expected repair/rehab costs. We examine credit history (via a “soft pull” working with the potential borrowers using a service like CreditKarma.com or a “hard credit check”) of all human borrowers. We do not look for a minimum credit score, but primarily focus on your credit activities/events in the last two years. Prior to making a decision on a loan commitment we typically do a property walk through with one of the borrowers.

At some point prior to a loan commitment we need to meet all human borrowers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

Borrowers (13)

There are several reasons why a business might want a bridge loan while waiting for a bank loan. Sometimes a transaction needs to happen quickly or the business owner needs liquidity quickly, but the bank needs more time to process the loan. Sometimes a bank can’t provide the loan until more time has passed after a credit or income hiccup.

Sometimes income or rental property needs to be quickly refinanced after or during a divorce. An ex-husband or ex-wife may no longer willing to be a borrower or guarantor. Sometimes a divorce damages one or more of the ex-spouses’ credit. The ex-husband or ex-wife may not have sufficient income to get a bank loan without the ex-spouse. However, a divorce decree may require the ex-spouse to no longer be a borrower or guarantor on the promissory note. Often with time a spouse may repair his or her credit, sell the property, or provide sufficient income to get longer term loan. Good Funds Lending, LLC provides loans secured by investment properties only (not properties intended for personal, family or household use). Good Funds Lending, LLC does not provide loans for personal residences (rental and investment properties only).

Categories: Borrowers, General

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com.
We may as it is important to us to know if borrowers are in trouble. We may not look at credit history for every loan with repeat borrowers (We do not pull credit reports for pre-approval applications). We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors.

As a Colorado hard money lender, we will only make loans as the first and only lien holder on a property. In our loan agreements, you will agree not to further encumber the property (e.g. no 2nd mortgage, other liens etc.). You should plan to have cash available for 3rd party closing costs (title insurance, closing fees), holding costs (insurance, taxes, utilities), property maintenance and cleaning expenses, staging expenses, cost overruns, other expected or unexpected expenses and rehab labor and material expenses (until you receive rehab draws, if you have a rehab draw account). If you borrow money for any of these purposes, it may not be secured/collateralized with the property or items attached to the property.

Categories: Borrowers, General

Typically our hard money loans have payments of $0 until the earlier of the end of the initial term, the property is sold or refinanced or there is a default; hence we are not generally concerned about $0 loan payments, but we are concerned with your ability successfully complete the project and have funds available for related expenses. If we do not think you can make the $0 loan payments, pay for some repairs before drawing rehab funds (if there is a rehab account) and complete the project we will not make the loan.

In general no, we will only loan as the first and only lien holder. As the loan is a hard money loan we want the hard asset (i.e. the property) to be unencumbered by other loans, whether subordinate or superior to our loan. In some cases we require a first lien on the project property and may be secured by junior liens on other properties.

No, you will need to have cash available for 3rd party closing costs (title insurance, closing fees, etc.).

Categories: Borrowers, General

The extension automatically occurs after the initial term (typically 180 day period) unless you have paid off the loan or there has been a default. On the first day of the extension period (typically day 181), your extension payment of 0.3% of the outstanding principal amount (includes any accrued interest that has been added to the initial principal) is due. (extensions only available for the Fix & Flip and Fix & Hold loans).

Categories: Borrowers, General
  • We only work with experienced real estate investors, which on average have lower risk to us.
  • We are working with one source for funds, so we are the final decision makers and do not need to consult with or comply with anyone else in making our lending decisions, restrictions and rules. We don’t have to promise outside investors higher rates of return.
  • We have low overhead.
  • We don’t use or charge for third party appraisals.
  • We underwrite in-house and don’t need to spend resources communicating back and forth with other parties.

If you (your family or your employees) are living in the property (single family residence or a 2-4 unit residential property) or the loan is for personal, family or household use, the loan is classified differently by federal and state law and we would not be allowed to offer these loans or would have additional process and administrative requirements. Therefore the restriction that you, your family and employees may not occupy, reside in, or live at the property is strict and is expressly prohibited in our loan agreements. Additionally we like lending for investment purposes only and do not want to be put in the position of ever having to potentially foreclose on someone’s home.

Our typical hard money loan process follows the the process linked here. Start the process by submitting a Loan Inquiry.

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com (and avoid hard credit checks).
It is important to us to know if potential borrowers are in currently in financial trouble. We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors. We will typically review credit history for each human borrower. We are not looking for a minimum credit score, but will evaluate recent credit history focusing primarily on the following aspects:

  • Related recent bankruptcies
  • Related recent foreclosure proceedings
  • Judgments
  • Recent history of late payments
  • Currently owed payments that are past due

We look at the each loan as a whole package including the asset, the borrowers and the market.

(Good Funds Lending, LLC provides hard money loans in the Colorado Denver Metro area)

For the pre-approval application, we will perform a cursory evaluation of your financial estimates for the project (purchase/acquisition cost, rehab budget, after repair value), and your level of experience and your answers to few other questions. If we believe there is a reasonable likelihood that we would make a loan based on the information provided, we will inform you that you are pre-approved. If approved, and you request a pre-approval letter (Often pre-approval letters are submitted with offers on properties; however, some borrowers may choose to complete a pre-approval application after the property is under contract). A pre-approval is not a guarantee that the loan will be approved or made.

For the full application you provide more details regarding the project and your experience. We more carefully review the borrowers and project. We evaluate the current and after repair value of the property and closely review the expected repair/rehab costs. We examine credit history (via a “soft pull” working with the potential borrowers using a service like CreditKarma.com or a “hard credit check”) of all human borrowers. We do not look for a minimum credit score, but primarily focus on your credit activities/events in the last two years. Prior to making a decision on a loan commitment we typically do a property walk through with one of the borrowers.

At some point prior to a loan commitment we need to meet all human borrowers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

General (28)

There are several reasons why a business might want a bridge loan while waiting for a bank loan. Sometimes a transaction needs to happen quickly or the business owner needs liquidity quickly, but the bank needs more time to process the loan. Sometimes a bank can’t provide the loan until more time has passed after a credit or income hiccup.

Sometimes income or rental property needs to be quickly refinanced after or during a divorce. An ex-husband or ex-wife may no longer willing to be a borrower or guarantor. Sometimes a divorce damages one or more of the ex-spouses’ credit. The ex-husband or ex-wife may not have sufficient income to get a bank loan without the ex-spouse. However, a divorce decree may require the ex-spouse to no longer be a borrower or guarantor on the promissory note. Often with time a spouse may repair his or her credit, sell the property, or provide sufficient income to get longer term loan. Good Funds Lending, LLC provides loans secured by investment properties only (not properties intended for personal, family or household use). Good Funds Lending, LLC does not provide loans for personal residences (rental and investment properties only).

Categories: Borrowers, General

The term “hard money lender”, in the context of real estate, typically refers to a lender who makes loan decisions primarily based on the underlying value of the property (aka the “hard asset”) rather than focusing on the borrower’s income, assets and credit. Hard money rates tend to be significantly higher than a conventional or traditional long term loan for an owner-occupied property or investment property, but often conventional lenders will not loan on Fix & Flip projects, or have strict criteria that frequently include requirements for large percentage down payments, high credit scores, high monthly income and/or assets, a small number of total property loans secured by the borrower etc. Often hard money lenders can underwrite and fund a loan in a matter of days rather than weeks or months.

Category: General

Financing provisions are a common area of confusion. We do not provide legal advice. You should speak with your real estate agent and your own attorney at your own expense. Often we see something in Section 4.5.3 of the commission approved Contract To Buy And Sell Real Estate where “Other” is checked and the blank is filled in along the lines of: “cash, private money loan, or other financing as selected at the discretion of the Buyer”. However, that may not be correct, sufficient, adequate, or appropriate.

Colorado Hard Money Financing Provisions

Colorado Hard Money Financing Provisions Section 4.5.3 from Contract To Buy And Sell Real Estate (Residential) (CBS1-6-15)

This post likely to become out of date as forms Colorado Real Estate Commission are changed. As of May 2017, Colorado Real Estate Commission approved forms can be found on the Colorado Division of Real Estate contracts and forms webpage.

Want a term sheet or to start the application process? Submit a Loan Inquiry (free)
Category: General

We do NOT provide loans for properties to be used for marijuana related business (retail, medical or cultivation, etc)? We do not knowingly provide loans for properties to be used for any illegal purposes, even if the illegality is related only to unenforced federal law.

No. Good Funds Lending, LLC is a hard money lender that provides asset based loans secured by real estate in the Denver Metro Area.

As “The Colorado hard money lender for experienced real estate professionals™“, we are focused on providing ethical and good service and we reliably fund our loan commitments.

In financial and real estate transactions the term “good funds” often means funds that are bank guaranteed or immediately available, which typically include cash, cashier’s checks, certified checks, bank money orders and sometimes other forms.

As a Colorado hard money lender we want borrowers to associate our name with real estate transactions and the reliability of “good funds”.

Category: General

We are a Colorado based hard money lender and our primary focus is the Denver Metro Area and we will also lend in Boulder and Colorado Springs. If we have experience with you, we may consider other areas in Colorado and other types of properties as well.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
During the hard money loan application process, you will provide us a detailed list or your expected rehab costs, by line-item. For a brief and simple example, let’s assume $3,500 for a new roof, $2,500 to refinish hardwood floors, $1,500 for a stainless kitchen package, $1,000 for kitchen countertops and $1,500 for kitchen cabinets. That’s a total rehab budget of $10,000.

We then calculate the amount Reimbursement Percentage, which is equal to the amount borrowed for rehab from Good Funds Lending, LLC divided by the total rehab budget (e.g. if you borrowed $10,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 100%. if you borrowed $8,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 80%).

Under Budget – Let’s say you complete the hardwood floors but find someone who can complete the job for $2,000. You would submit the draw request, the lien waiver, and photo of the finished floor (let’s assume that the floor is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order and the work has been completed to a professional standard and manner and appropriate like, kind and quality, your disbursement is granted for the original budgeted amount of $2,500 multiplied by the Reimbursement Percentage (Additionally the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Over Budget — Let’s say you complete the roof, but it goes over budget and costs $4,000 and you did not speak to us earlier and there were no changes to allocation across work items. You would submit the draw request, the lien waiver, the finalled permit and photo of the finished roof (let’s assume that the roof is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order, your draw request would be granted, but only for $3,500 multiplied by the Reimbursement Percentage (the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Provided that you complete all of the items on time and there are no defaults, you will be able to draw the full borrowed rehab amount minus draw request fees at $75 each, even if you come in over budget. If you come in over budget, your the amount you can draw is the same.

We are a Colorado hard money lender for non-owner occupied properties in the Colorado Denver Metro Area.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
Please open a dialog with us as early as possible. Although we don’t change the total amount of draw account or loan amount, but we typically try to be flexible in allocation and work items assuming we believe the changes are financially wise and we have been kept in the loop.

(Question and answer applies only to Fix & Flip and Fix & Hold hard money loans with rehab accounts)
There is time and expense involved in evaluating your draw request and transferring the money to you. Typically, we (the hard money lender) will have the loan servicer inspect the property to verify that the work has been completed in accordance with the agreements.

Category: General

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
If the hard money loan includes a funds borrowed from us held in a rehab account, then such funds are part of the loan and interest is charged to the borrowers from the date of origination of the loan. This is because as soon as we originate your loan we set aside the full amount of your rehab budget in an account ready for disbursement. When the money is in the rehab account we cannot loan this money to any other borrowers.

Category: General

(Question and answer applies only to Fix & Flip and Fix & Hold hard money loans that include a rehab draw account)
We will typically disburse funds to you either by ACH transfer or business check. To facilitate ACH transfer, you will need to fill out appropriate paperwork and your bank must accommodate the transaction. We typically do not disburse by wire due to the costs associated for both parties.

Category: General

This hard money loan can be used if you buy a property that you intend to flip with no rehab or refinance, but you need to hold onto it for a certain period of time before you can sell it to the next buyer or refinance the loan. This could be some sort of deed restriction, a bank rule or law about how quickly you can flip a short sale or the end buyer’s lender’s rules about how quickly title can be transferred. We are a hard money lender that requires that we hold the first and only lien on the property (hard asset).

Category: General

After you have completed and paid off one hard money loan with us, typically repeat borrowers are permitted to have up to four concurrent loans with us, but a sum total maximum principal of $650,000, but this determination will be made in our sole discretion and will involve a more in-depth understanding of the availability of your work crew(s).

As a Colorado hard money lender, we require that we hold the first and only lien on properties.

As a Colorado hard money lender, we will only make loans as the first and only lien holder on a property. In our loan agreements, you will agree not to further encumber the property (e.g. no 2nd mortgage, other liens etc.). You should plan to have cash available for 3rd party closing costs (title insurance, closing fees), holding costs (insurance, taxes, utilities), property maintenance and cleaning expenses, staging expenses, cost overruns, other expected or unexpected expenses and rehab labor and material expenses (until you receive rehab draws, if you have a rehab draw account). If you borrow money for any of these purposes, it may not be secured/collateralized with the property or items attached to the property.

Categories: Borrowers, General

In general no, we will only loan as the first and only lien holder. As the loan is a hard money loan we want the hard asset (i.e. the property) to be unencumbered by other loans, whether subordinate or superior to our loan. In some cases we require a first lien on the project property and may be secured by junior liens on other properties.

No, you will need to have cash available for 3rd party closing costs (title insurance, closing fees, etc.).

Categories: Borrowers, General

Yes, as long as the loan meets our loan amount to value criteria and you want to roll in the origination fee into the hard money loan.

Category: General

Yes, we will roll origination fees into the hard money loan as long as the loan meets our loan amount to value ratio criteria and you want to roll in the origination fee.

Category: General

None of standard loan programs charge a pre-payment penalty. We welcome your successful hard money loan payoff at any time. Custom loans that don’t conform to our standard loan programs could have minimum interest amounts, but typically do not.

Category: General

(Question and answer applies only to Fix & Flip and Fix & Hold Loans) Besides the application fee, you will not owe us any money until you sell or refinance the property or until you extend beyond the initial term (typically 180 days), unless you default on the loan or choose to pay the origination fees upfront, rather than roll the origination fees into the loan. However, you will need to have cash available for 3rd party closing costs (title insurance, closing fees), holding costs (insurance, taxes, utilities), property maintenance and cleaning expenses, staging expenses, cost overruns, other expected or unexpected expenses and rehab labor and material expenses (until you receive rehab draws, if you have a rehab draw account). On the first day of the extension and every 30 days thereafter, you will owe an extension payment equal to 0.3% of the outstanding principal amount at that time. Accrued interest is added to principal every 30 days.

Category: General

The extension automatically occurs after the initial term (typically 180 day period) unless you have paid off the loan or there has been a default. On the first day of the extension period (typically day 181), your extension payment of 0.3% of the outstanding principal amount (includes any accrued interest that has been added to the initial principal) is due. (extensions only available for the Fix & Flip and Fix & Hold loans).

Categories: Borrowers, General

Because we are private hard money lender with a single source, we are the final decision makers and do not need to consult with anyone else in making our lending decisions, restrictions and rules. This allows us to act quickly. Also, we don’t have to promise outside investors higher rates of return (charge higher rates). Good Funds Lending, LLC provides hard money loans for non-owner occupied properties in the Colorado Denver Metro Area.

Category: General
  • We only work with experienced real estate investors, which on average have lower risk to us.
  • We are working with one source for funds, so we are the final decision makers and do not need to consult with or comply with anyone else in making our lending decisions, restrictions and rules. We don’t have to promise outside investors higher rates of return.
  • We have low overhead.
  • We don’t use or charge for third party appraisals.
  • We underwrite in-house and don’t need to spend resources communicating back and forth with other parties.

If you (your family or your employees) are living in the property (single family residence or a 2-4 unit residential property) or the loan is for personal, family or household use, the loan is classified differently by federal and state law and we would not be allowed to offer these loans or would have additional process and administrative requirements. Therefore the restriction that you, your family and employees may not occupy, reside in, or live at the property is strict and is expressly prohibited in our loan agreements. Additionally we like lending for investment purposes only and do not want to be put in the position of ever having to potentially foreclose on someone’s home.

Yes, we can provide custom bridge loans for up to 3 years. Fix & Flips loans are typically limited to 360 days or less. Our bridge loans can also be used as Transaction/Flash Funding and Seasoning Funding.

Category: General

Our typical hard money loan process follows the the process linked here. Start the process by submitting a Loan Inquiry.

Insurance (3)
  • Use of a settlement agent and title insurer that is acceptable to Good Funds Lending, LLC
  • Loan title policy must include expanded coverage including the following endorsements: ALTA form 09-06/9.3-06 Form 100, ALTA form 8.1-06, ALTA 22-06 and ALTA 6.2 Form 110.8 (or equivalents endorsements; endorsements and requirements may vary by property type and other specifics)
  • The title commitment is acceptable to us and the title insurance underwriter provides a verified closing protection letter prior to the closing
  • The title commitment for the title loan policy must remove Standard Printed Exceptions (typically 1-4) and the Gap Exception. If there are are rehab funds in the loan, then Standard Printed Exception (4) may be modified to state any lien or right to a lien, for services, labor or material furnished, incurred and imposed after the date of closing.”
  • Good Funds Lending, LLC loan must be a first lien on the property (except for property taxes not yet due and payable)
  • The title commitment for the title loan policy must remove any exceptions not acceptable to Good Funds Lending, LLC.”
  • Settlement agent must execute and return Good Funds Lending, LLC closing instructions at least 1 full business days prior to closing.
  • Title Insurer must provide and verify an acceptable closing protection letter to Good Funds Lending, LLC at least 1 full business days prior to closing.
  • Settlement Agent must supply acceptable settlement statements to Good Funds Lending, LLC at least 1 full business days prior to closing.
  • Borrower must have and maintain hazard insurance policy with Good Funds Lending, LLC as the mortgagee during the entire term of the loan
  • Underwriter has a current AM Best Financial Strength Rating of BBB+ or better, or a current Demotech Financial Strength Rating of A or better
  • Typically for a single family detached house a vacant dwelling policy commonly known as ISO “Special Form” or “DP-3” (without deletions or reductions) and including coverage for vandalism, and malicious mischief (including minimum coverage amounts and deductions do not exceed $5000) or other policy forms which may include endorsements such that policy includes all perils and provides equivalent or increased coverage as a Vacant Dwelling Special Form policy described above.
  • Endorsements must be included such that there are no gaps, exceptions, nor reductions in the above described required coverages related to renovation, construction or completion of renovation or construction, nor other gaps, exceptions, or reductions.
  • Policy must be for replacement cost (not actual cash value also known as 'ACV' nor Agreed Value)
  • Hazard Insurance Policy must include what is commonly known in the property insurance industry as a “Standard Mortgagee Clause”
  • The mortgagee must receive written notice at least 30 days prior to any changes to the policy or listed insured parties. The mortgagee must receive written notice at least 30 days prior any non-renewal or cancellation of the policy for any reason other than non-payment. The mortgagee will receive written notice at least 10 days prior cancellation of the policy for non-payment.
  • The hazard insurance includes at least $500,000 to $1,000,000 of liability coverage depending on the project and the property
  • Required structural/dwelling coverage amounts varies but typically 90% or more of the estimated after rehab value of the property (and includes coverage for other structures if other structures exist such as unattached garages and decks)
  • The hazard insurance is not a homeowner policy
  • Proof of coverage or insurance binders including all requirements must be provided to Good Funds Lending, LLC prior to closing including hazard insurance agents/brokers are required to complete and sign a hazard insurance coverage confirmation form
  • A flood insurance policy is required if the property is in what we consider to be a high risk flood area.
Category: Insurance

We do not require you to use a certain title company or hazard insurance company, as long as the corresponding requirements for hazard and title insurance are met. Here are some companies our people have worked with successfully in the past; however, we make no representations or warranties about these companies. You should select the vendor that best meets your needs (provided they meet the requirements set forth in the loan requirements and documents).

Pre-Approval Letter (3)

In a full loan application for one of our Colorado hard money loans we require:

Materials required depend somewhat on the type of loan and type of property.
For a rehab loan on a single family, the following items would likely be required:

  • Completed loan application form
  • Rehab items/budget (Schedule of Work – we can provide a template, other formats may also be acceptable)
  • The real estate purchase agreement contract (and all disclosures, addenda and amendments)
  • Acceptable proof of past rehab experience (items may vary).
  • Copies of recent tax returns & IRS form 4506T which allows us to obtain an official copy form the IRS for verification [income amounts are not important, primarily verifying identity]
  • Under certain circumstances, we may require special inspections or reports (e.g. suspected structural or mold issues, well or septic system etc.) prior to a loan commitment decision. Sewer scope reports are often required for homes built prior to 1982 or built in certain areas. Asbestos tests and report are commonly required, but depend on the scope and type of repairs/renovations. Additional documents are likely to be required if the property will be occupied at the time of purchase or there is a non arms length transaction.

At some point prior to a loan commitment we need to meet all signers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

For a pre-approval application (for a pre-approval letter), we simply require a pre-approval application and id verification through an person meeting.

Yes, if we pre-approve the loan after reviewing a free pre-approval application (remember a pre-approval is not a loan commitment).

(Good Funds Lending, LLC provides hard money loans in the Colorado Denver Metro area)

For the pre-approval application, we will perform a cursory evaluation of your financial estimates for the project (purchase/acquisition cost, rehab budget, after repair value), and your level of experience and your answers to few other questions. If we believe there is a reasonable likelihood that we would make a loan based on the information provided, we will inform you that you are pre-approved. If approved, and you request a pre-approval letter (Often pre-approval letters are submitted with offers on properties; however, some borrowers may choose to complete a pre-approval application after the property is under contract). A pre-approval is not a guarantee that the loan will be approved or made.

For the full application you provide more details regarding the project and your experience. We more carefully review the borrowers and project. We evaluate the current and after repair value of the property and closely review the expected repair/rehab costs. We examine credit history (via a “soft pull” working with the potential borrowers using a service like CreditKarma.com or a “hard credit check”) of all human borrowers. We do not look for a minimum credit score, but primarily focus on your credit activities/events in the last two years. Prior to making a decision on a loan commitment we typically do a property walk through with one of the borrowers.

At some point prior to a loan commitment we need to meet all human borrowers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

Process (6)

There are several reasons why a business might want a bridge loan while waiting for a bank loan. Sometimes a transaction needs to happen quickly or the business owner needs liquidity quickly, but the bank needs more time to process the loan. Sometimes a bank can’t provide the loan until more time has passed after a credit or income hiccup.

In a full loan application for one of our Colorado hard money loans we require:

Materials required depend somewhat on the type of loan and type of property.
For a rehab loan on a single family, the following items would likely be required:

  • Completed loan application form
  • Rehab items/budget (Schedule of Work – we can provide a template, other formats may also be acceptable)
  • The real estate purchase agreement contract (and all disclosures, addenda and amendments)
  • Acceptable proof of past rehab experience (items may vary).
  • Copies of recent tax returns & IRS form 4506T which allows us to obtain an official copy form the IRS for verification [income amounts are not important, primarily verifying identity]
  • Under certain circumstances, we may require special inspections or reports (e.g. suspected structural or mold issues, well or septic system etc.) prior to a loan commitment decision. Sewer scope reports are often required for homes built prior to 1982 or built in certain areas. Asbestos tests and report are commonly required, but depend on the scope and type of repairs/renovations. Additional documents are likely to be required if the property will be occupied at the time of purchase or there is a non arms length transaction.

At some point prior to a loan commitment we need to meet all signers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

For a pre-approval application (for a pre-approval letter), we simply require a pre-approval application and id verification through an person meeting.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
Typically 3 to 5 business days provided we have all required information from you (photos of the work completed, lien waivers from your contractors, finalled permits where required, and receipts if required) as well as an opportunity to inspect. We will disburse funds to you either by Electronic/ACH transfer (but typically not Wire) or business check.

Category: Process

After you have completed and paid off one hard money loan with us, typically repeat borrowers are permitted to have up to four concurrent loans with us, but a sum total maximum principal of $650,000, but this determination will be made in our sole discretion and will involve a more in-depth understanding of the availability of your work crew(s).

As a Colorado hard money lender, we require that we hold the first and only lien on properties.

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com.
We may as it is important to us to know if borrowers are in trouble. We may not look at credit history for every loan with repeat borrowers (We do not pull credit reports for pre-approval applications). We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors.

Our typical hard money loan process follows the the process linked here. Start the process by submitting a Loan Inquiry.

Property (11)

We do NOT provide loans for properties to be used for marijuana related business (retail, medical or cultivation, etc)? We do not knowingly provide loans for properties to be used for any illegal purposes, even if the illegality is related only to unenforced federal law.

No. Good Funds Lending, LLC is a hard money lender that provides asset based loans secured by real estate in the Denver Metro Area.

We are a Colorado based hard money lender and our primary focus is the Denver Metro Area and we will also lend in Boulder and Colorado Springs. If we have experience with you, we may consider other areas in Colorado and other types of properties as well.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
During the hard money loan application process, you will provide us a detailed list or your expected rehab costs, by line-item. For a brief and simple example, let’s assume $3,500 for a new roof, $2,500 to refinish hardwood floors, $1,500 for a stainless kitchen package, $1,000 for kitchen countertops and $1,500 for kitchen cabinets. That’s a total rehab budget of $10,000.

We then calculate the amount Reimbursement Percentage, which is equal to the amount borrowed for rehab from Good Funds Lending, LLC divided by the total rehab budget (e.g. if you borrowed $10,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 100%. if you borrowed $8,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 80%).

Under Budget – Let’s say you complete the hardwood floors but find someone who can complete the job for $2,000. You would submit the draw request, the lien waiver, and photo of the finished floor (let’s assume that the floor is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order and the work has been completed to a professional standard and manner and appropriate like, kind and quality, your disbursement is granted for the original budgeted amount of $2,500 multiplied by the Reimbursement Percentage (Additionally the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Over Budget — Let’s say you complete the roof, but it goes over budget and costs $4,000 and you did not speak to us earlier and there were no changes to allocation across work items. You would submit the draw request, the lien waiver, the finalled permit and photo of the finished roof (let’s assume that the roof is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order, your draw request would be granted, but only for $3,500 multiplied by the Reimbursement Percentage (the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Provided that you complete all of the items on time and there are no defaults, you will be able to draw the full borrowed rehab amount minus draw request fees at $75 each, even if you come in over budget. If you come in over budget, your the amount you can draw is the same.

We are a Colorado hard money lender for non-owner occupied properties in the Colorado Denver Metro Area.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
Please open a dialog with us as early as possible. Although we don’t change the total amount of draw account or loan amount, but we typically try to be flexible in allocation and work items assuming we believe the changes are financially wise and we have been kept in the loop.

In general no, we will only loan as the first and only lien holder. As the loan is a hard money loan we want the hard asset (i.e. the property) to be unencumbered by other loans, whether subordinate or superior to our loan. In some cases we require a first lien on the project property and may be secured by junior liens on other properties.

Yes, but you need to comply with Colorado and other laws regarding the purchase contracts, process, etc.

No. We cannot properly inspect the property and verify that it is not owner-occupied and otherwise mitigate risks for the hard money loan.

Category: Property

At this time, we provide hard money loans almost exclusively on non-owner-occupied residential properties. In some cases we will provide hard money loans on small commercial buildings. We typically will not lend on condos, townhomes or attached homes unless all units of the structure are included (i.e. both sides of a duplex, but not half a duplex). Our primary focus is the Denver metro area and we will also lend in Boulder and Colorado Springs. If we have experience with you, we may consider other areas in Colorado and other types of properties as well.

As direct private hard money lender, we do not use an appraiser. We will review your proposed rehab budget and expected level of finishes/improvements and compare your intended finished product with similar properties sold in the area in the most recent 6-12 months, based on the MLS and county records, using net price after any seller concessions. We may make adjustments based on other similar properties that are currently for sale nearby. We typically estimate market value of properties based on what we believe will be a price likely to produce a sale with in 30-45 days on the market. One of the benefits of using a local Colorado direct private hard money lender that does not use appraisers is that we are free to consider information from the borrower if relevant, when making our estimate of value.

(Good Funds Lending, LLC provides hard money loans in the Colorado Denver Metro area)

For the pre-approval application, we will perform a cursory evaluation of your financial estimates for the project (purchase/acquisition cost, rehab budget, after repair value), and your level of experience and your answers to few other questions. If we believe there is a reasonable likelihood that we would make a loan based on the information provided, we will inform you that you are pre-approved. If approved, and you request a pre-approval letter (Often pre-approval letters are submitted with offers on properties; however, some borrowers may choose to complete a pre-approval application after the property is under contract). A pre-approval is not a guarantee that the loan will be approved or made.

For the full application you provide more details regarding the project and your experience. We more carefully review the borrowers and project. We evaluate the current and after repair value of the property and closely review the expected repair/rehab costs. We examine credit history (via a “soft pull” working with the potential borrowers using a service like CreditKarma.com or a “hard credit check”) of all human borrowers. We do not look for a minimum credit score, but primarily focus on your credit activities/events in the last two years. Prior to making a decision on a loan commitment we typically do a property walk through with one of the borrowers.

At some point prior to a loan commitment we need to meet all human borrowers on the loan and take a picture of each driver license (or State ID) and do a property walk through.

Qualifications (19)

We do NOT provide loans for properties to be used for marijuana related business (retail, medical or cultivation, etc)? We do not knowingly provide loans for properties to be used for any illegal purposes, even if the illegality is related only to unenforced federal law.

No. Good Funds Lending, LLC is a hard money lender that provides asset based loans secured by real estate in the Denver Metro Area.

We are a Colorado based hard money lender and our primary focus is the Denver Metro Area and we will also lend in Boulder and Colorado Springs. If we have experience with you, we may consider other areas in Colorado and other types of properties as well.

  • Use of a settlement agent and title insurer that is acceptable to Good Funds Lending, LLC
  • Loan title policy must include expanded coverage including the following endorsements: ALTA form 09-06/9.3-06 Form 100, ALTA form 8.1-06, ALTA 22-06 and ALTA 6.2 Form 110.8 (or equivalents endorsements; endorsements and requirements may vary by property type and other specifics)
  • The title commitment is acceptable to us and the title insurance underwriter provides a verified closing protection letter prior to the closing
  • The title commitment for the title loan policy must remove Standard Printed Exceptions (typically 1-4) and the Gap Exception. If there are are rehab funds in the loan, then Standard Printed Exception (4) may be modified to state any lien or right to a lien, for services, labor or material furnished, incurred and imposed after the date of closing.”
  • Good Funds Lending, LLC loan must be a first lien on the property (except for property taxes not yet due and payable)
  • The title commitment for the title loan policy must remove any exceptions not acceptable to Good Funds Lending, LLC.”
  • Settlement agent must execute and return Good Funds Lending, LLC closing instructions at least 1 full business days prior to closing.
  • Title Insurer must provide and verify an acceptable closing protection letter to Good Funds Lending, LLC at least 1 full business days prior to closing.
  • Settlement Agent must supply acceptable settlement statements to Good Funds Lending, LLC at least 1 full business days prior to closing.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
During the hard money loan application process, you will provide us a detailed list or your expected rehab costs, by line-item. For a brief and simple example, let’s assume $3,500 for a new roof, $2,500 to refinish hardwood floors, $1,500 for a stainless kitchen package, $1,000 for kitchen countertops and $1,500 for kitchen cabinets. That’s a total rehab budget of $10,000.

We then calculate the amount Reimbursement Percentage, which is equal to the amount borrowed for rehab from Good Funds Lending, LLC divided by the total rehab budget (e.g. if you borrowed $10,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 100%. if you borrowed $8,000 and the rehab budget is $10,000 then the Reimbursement Percentage is 80%).

Under Budget – Let’s say you complete the hardwood floors but find someone who can complete the job for $2,000. You would submit the draw request, the lien waiver, and photo of the finished floor (let’s assume that the floor is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order and the work has been completed to a professional standard and manner and appropriate like, kind and quality, your disbursement is granted for the original budgeted amount of $2,500 multiplied by the Reimbursement Percentage (Additionally the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Over Budget — Let’s say you complete the roof, but it goes over budget and costs $4,000 and you did not speak to us earlier and there were no changes to allocation across work items. You would submit the draw request, the lien waiver, the finalled permit and photo of the finished roof (let’s assume that the roof is the only work item for this draw request although it is common to submit many items per draw request). If everything is in order, your draw request would be granted, but only for $3,500 multiplied by the Reimbursement Percentage (the $75 draw request fee taken from the draw account and paid to the loan servicer). You can never draw more than what has been borrowed. The last draw is typically lower than the amount of the work items in that draw because the draw request fees that have been paid. Hence if there have been 2 draws (draw requests), there would be a $150 in draw request fees).

Provided that you complete all of the items on time and there are no defaults, you will be able to draw the full borrowed rehab amount minus draw request fees at $75 each, even if you come in over budget. If you come in over budget, your the amount you can draw is the same.

We are a Colorado hard money lender for non-owner occupied properties in the Colorado Denver Metro Area.

(Question and answer applies only to Fix & Flip and Fix & Hold Loans)
Please open a dialog with us as early as possible. Although we don’t change the total amount of draw account or loan amount, but we typically try to be flexible in allocation and work items assuming we believe the changes are financially wise and we have been kept in the loop.

After you have completed and paid off one hard money loan with us, typically repeat borrowers are permitted to have up to four concurrent loans with us, but a sum total maximum principal of $650,000, but this determination will be made in our sole discretion and will involve a more in-depth understanding of the availability of your work crew(s).

As a Colorado hard money lender, we require that we hold the first and only lien on properties.

Typically our hard money loans have payments of $0 until the earlier of the end of the initial term, the property is sold or refinanced or there is a default; hence we are not generally concerned about $0 loan payments, but we are concerned with your ability successfully complete the project and have funds available for related expenses. If we do not think you can make the $0 loan payments, pay for some repairs before drawing rehab funds (if there is a rehab account) and complete the project we will not make the loan.

In general no, we will only loan as the first and only lien holder. As the loan is a hard money loan we want the hard asset (i.e. the property) to be unencumbered by other loans, whether subordinate or superior to our loan. In some cases we require a first lien on the project property and may be secured by junior liens on other properties.

Yes, but you need to comply with Colorado and other laws regarding the purchase contracts, process, etc.

At this time, we provide hard money loans almost exclusively on non-owner-occupied residential properties. In some cases we will provide hard money loans on small commercial buildings. We typically will not lend on condos, townhomes or attached homes unless all units of the structure are included (i.e. both sides of a duplex, but not half a duplex). Our primary focus is the Denver metro area and we will also lend in Boulder and Colorado Springs. If we have experience with you, we may consider other areas in Colorado and other types of properties as well.

We do not require you to use a certain title company or hazard insurance company, as long as the corresponding requirements for hazard and title insurance are met. Here are some companies our people have worked with successfully in the past; however, we make no representations or warranties about these companies. You should select the vendor that best meets your needs (provided they meet the requirements set forth in the loan requirements and documents).

As direct private hard money lender, we do not use an appraiser. We will review your proposed rehab budget and expected level of finishes/improvements and compare your intended finished product with similar properties sold in the area in the most recent 6-12 months, based on the MLS and county records, using net price after any seller concessions. We may make adjustments based on other similar properties that are currently for sale nearby. We typically estimate market value of properties based on what we believe will be a price likely to produce a sale with in 30-45 days on the market. One of the benefits of using a local Colorado direct private hard money lender that does not use appraisers is that we are free to consider information from the borrower if relevant, when making our estimate of value.

  • We only work with experienced real estate investors, which on average have lower risk to us.
  • We are working with one source for funds, so we are the final decision makers and do not need to consult with or comply with anyone else in making our lending decisions, restrictions and rules. We don’t have to promise outside investors higher rates of return.
  • We have low overhead.
  • We don’t use or charge for third party appraisals.
  • We underwrite in-house and don’t need to spend resources communicating back and forth with other parties.

If you (your family or your employees) are living in the property (single family residence or a 2-4 unit residential property) or the loan is for personal, family or household use, the loan is classified differently by federal and state law and we would not be allowed to offer these loans or would have additional process and administrative requirements. Therefore the restriction that you, your family and employees may not occupy, reside in, or live at the property is strict and is expressly prohibited in our loan agreements. Additionally we like lending for investment purposes only and do not want to be put in the position of ever having to potentially foreclose on someone’s home.

Our typical hard money loan process follows the the process linked here. Start the process by submitting a Loan Inquiry.

Yes, if we pre-approve the loan after reviewing a free pre-approval application (remember a pre-approval is not a loan commitment).

We can work with borrowers to utilize a “soft pull” credit history service such as CreditKarma.com (and avoid hard credit checks).
It is important to us to know if potential borrowers are in currently in financial trouble. We are a hard money lender, so our loan decisions are primarily based on the underlying value of the property (“hard asset”); However, even as hard money lenders, we do consider recent credit related behavior among other factors. We will typically review credit history for each human borrower. We are not looking for a minimum credit score, but will evaluate recent credit history focusing primarily on the following aspects:

  • Related recent bankruptcies
  • Related recent foreclosure proceedings
  • Judgments
  • Recent history of late payments
  • Currently owed payments that are past due

We look at the each loan as a whole package including the asset, the borrowers and the market.

(Good Funds Lending, LLC provides hard money loans in the Colorado Denver Metro area)

For the pre-approval application, we will perform a cursory evaluation of your financial estimates for the project (purchase/acquisition cost, rehab budget, after repair value), and your level of experience and your answers to few other questions. If we believe there is a reasonable likelihood that we would make a loan based on the information provided, we will inform you that you are pre-approved. If approved, and you request a pre-approval letter (Often pre-approval letters are submitted with offers on properties; however, some borrowers may choose to complete a pre-approval application after the property is under contract). A pre-approval is not a guarantee that the loan will be approved or made.

For the full application you provide more details regarding the project and your experience. We more carefully review the borrowers and project. We evaluate the current and after repair value of the property and closely review the expected repair/rehab costs. We examine credit history (via a “soft pull” working with the potential borrowers using a service like CreditKarma.com or a “hard credit check”) of all human borrowers. We do not look for a minimum credit score, but primarily focus on your credit activities/events in the last two years. Prior to making a decision on a loan commitment we typically do a property walk through with one of the borrowers.

At some point prior to a loan commitment we need to meet all human borrowers on the loan and take a picture of each driver license (or State ID) and do a property walk through.


Hard Money is not always the correct solution. Before using hard money, you should explore other financing options available. We are building a Colorado hard money business focused repeat business where our borrowers use our hard money lending services only when appropriate and as one part of their financing strategy.

We are a private lender seeking loan opportunities that are beneficial to the community, the borrowers, and Good Funds Lending, LLC. We want long-term relationships with ethical people. We are looking for borrowers that are strategically using hard money, often because banks and credit unions are too slow to capitalize on an opportunity.

A hard money lender that that is easy to work with and talk to. Please contact us about your Colorado hard money questions.

Hard Money is not always the correct solution. Before using hard money, you should explore other financing options available. We are building a Colorado hard money business focused repeat business, where our borrowers use our hard money lending only when appropriate and as one part of their financing strategy.

Answers to frequently asked questions regarding Good Funds Lending, LLC and Colorado hard money loans are available on our Frequently Asked Questions Page.

Colorado hard money loans for single family, multi-unit residential (2-40 units), operating/occupied commercial , and operating/occupied industrial properties in the Denver Metro Area (residential properties must be non-owner occupied).

Colorado is a wonderful place to live and do business. We are happy to be a part of the Denver business community.