We make hard money land loans secured by property located in Colorado, provided the land is zoned for residential or commercial use. See guidelines below.
Loan Size
$200,000 – $800,000
Use of Loan Proceeds
Loan proceeds must be used for a business purpose, not for “personal, family or household” purposes.
Property Location
The property must be located in Colorado. I focus on property located along the Front Range of Colorado, from Fort Collins to Colorado Springs. (See FAQ below.)
LTV (Loan to Value)
My hard money land loans will generally not exceed 50% of the value of the property.
Loan Term
I’m flexible, however the term of our land loans will generally not be longer than 2 years.
Interest Rate
My 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 hard money loans from me 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, 2-3 weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.
Land FAQs
Yes, we will allow a second lien position behind our first lien position.
Yes. We will consider hard money loans 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.
No. The land must be currently zoned for commercial or residential development.
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, 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).
No. We do not make loans to put in infrastructure or for vertical construction. We do not have the staff to process draw requests and monitor the development process.
No. Loan proceeds must be used for a business purpose, not for “personal, family or household” purposes.
