Below are our guidelines for commercial hard money loans. We make loans secured by all types of commercial real estate (industrial, office, retail, mixed-use, apartment projects).
Commercial Hard Money Loans
$200,00 to $800,000.
Property Location
We focus on property located along the Front Range of Colorado, from Fort Collins to Colorado Springs. (See FAQ below.)
LTV (Loan to Value)
Our loan amount will be no more than 60-70% of the property value today.
Loan Term
We’re flexible, however the term will generally not be longer than 2 years.
Interest Rate
Our interest rate can be as low as 8.5%, depending on the property, the location, the LTV, maturity date and the borrower. Borrower makes monthly, interest-only payments.
Prepayment Penalty
None. You may prepay your hard money loan from us at any time, without penalty.
Origination Fee (Points)
Origination fee is typically 2-4, points. This fee is dependent on the borrower, property, location, loan term, etc.
Application Fee
None
Appraisal Fee
An appraisal may be required, but not always.
Inspection Fee
An inspection fee may be required, but not usually
Timing
If there are not any major issues, 2-4 weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.
Commercial FAQs
Yes, we will allow a second lien position behind our first lien position.
Yes. We will consider making a hard money loan elsewhere in Colorado, and have done so. However, depending on the location, you may incur additional expenses, including, but not limited to, an inspection fee and an appraisal fee.
Yes. While we will pull your credit report and examine additional financial information, our decision to make the loan will be based primarily on an inspection of the property itself, our opinion of the value of the property and your exit strategy. We understand that bad things can happen to good people.
Most likely, yes, provided you have made your payments on time, are not in default on any other loan provisions and the project fundamentals are substantially the same as those at the time the loan was originated. Our loan documents contain an extension provision.
Yes, after closing a commercial hard money loan, we will allow you to walk away from the closing table with cash in your pocket if our underwriting justifies a loan amount larger than that needed to pay off an existing loan(s).
