If you are looking to buy a real estate investment property in Colorado you may be looking to close on a deal quickly, and you don’t need a 30-year loan for an easy 3-6-month flip & flip. By choosing to work with a private money lender you are given a bit more flexibility to work with. But, just like any other loan process, it is still possible to make mistakes.

Here are a few tips on borrowing from a Private Money Lender in Colorado:

Be prepared for a down payment
The details of every private money loan will depend on the investor buy typically the lending terms will fall within these terms; 1-3 year notes, up to 75% LTC, 0%-3% origination fees and interest only (monthly) payments.

Keep things realistic
Having large goals are great to shoot for, but having realistic goals is even better. We want to see you achieve goals and not just claim you can do everything and more. When discussing with your lender be specific about what your goals are. Have the figures and information prepared to be reviewed thoroughly.

Keep your word
This may go in line with the keeping things realistic, but if you state that you’ll have a portion of your work completed before you request a draw you will be expected to have that amount completed. If you fail to perform you could hurt your integrity, and the relationship with the lender could also be hurt as well.

Find an experienced local lender
We know most investors like to support their local community buy shopping locally or donating to local charities. You can do the same with your private money lender in Colorado and you’ll also get the experience of someone who is invested in seeing the community you are working in thrive.

Patience is Key
Yes, private money lenders are going to move faster than a traditional lender, but by being overly pushy and checking in too frequently or too aggressively you may be distracting the lender from getting the loan completed. Typically, the lender should be the one following up with you letting you know where your loan is at in the process. So, take a breath, and trust that we know how time sensitive the deal is.

One last tip to keep in mind: private money lending in Colorado has different rules. No matter where the lending is coming from there are regulations and rules associated with it, and if you’re working with a private money lender in Colorado, they may also have other rules to follow so make sure you know them.

For more information on private money lending in Colorado or if you are interested in buying an investment property in Colorado, contact Indicate Capital.

If done the right way, investing in commercial properties can yield significant benefits. Working with reputable commercial hard money lenders in Colorado, like Indicate Capital can help you secure the funds you need.

Types of Commercial Investment Properties
Types of commercial properties include apartment complexes, office buildings, warehouses, retail spaces, or industrial buildings. Some properties may include several types of uses. Investing in properties like these can potentially result in a high return.

Commercial Tenants
Any landlord knows that investing in property is far more complicated than just sitting back and collecting the rent. Although, most times, commercial tenants tend to be easier to work with than residential ones. For starters, the law allows far greater flexibility in drafting a commercial lease than a residential one. You have latitude in choosing the type of lease and essential terms such as lease termination, security deposits, notice periods, and any other matters of importance. Further, working with a business generally creates a more professional relationship. Businesses generally have at least the same level of investment as you do in keeping the property in excellent condition and building good relationships with neighbors.

Leases
As a commercial property owner, you may be able to use a lease that shifts most of the property’s expenses to the tenant, known as a triple-net lease. This can save you both money and hassle, as the tenant takes care of maintenance and other issues.

Higher Earnings
While specific rental income depends on numerous factors such as the location, property type, and the specific business that rents from you, returns on commercial investment properties typically exceed those on residential rentals by a substantial percentage.

Healthier Accuracy in Property Pricing
A potential investor can usually assess the value of a commercial property based on specific, objective facts. These consist of the income the current landlord receives from the property, which is an easily verifiable fact. In contrast, residential properties are often valued based on an assortment of different perceptions, which can be hard to unravel.

Appreciation
The value of any investment asset can rise or fall due to factors out of the investor’s control. While this can be true of commercial properties as well, you can also take action to minimize risks and to increase value. Raising the rent, improving the buildings, and obtaining the necessary permissions to add or change a property use are some common ways landlords can add value to commercial real estate.

Getting Financing
If you need help getting commercial real estate financing for your investment, Indicate Capital commercial property loans can provide what you need. Reach out to us online and let us know how we can help.