Do you have a desire to embark on a commercial real estate endeavor? Maybe open up a restaurant, shopping center, or hotel? But the struggle of getting a loan is holding you back? We have good news for you. At Abbey Mortgage & Investments, Inc., we specialize in Colorado hard money loans and can help get you a loan when other lenders tell you, “no.” To help you in this difficult and stressful process, we will be sharing some of our top four tips for getting a hard money loan in Colorado so you can start making your dreams come true.

Show The Potential Value Of The Property

When it comes to getting approved for a hard money loan, lenders look at the collateral value of the commercial property rather than your credit score — those with a low credit score can now take a sigh relief. Instead of financing based on your credit score, lenders finance based on the collateral value of your property. Therefore, we recommend gathering the following information for your lender:

-The estimated value of the property

-How much of a down payment or equity the borrow will contribute

-Growth projections

Pro Tip: If you have a track record of successful commercial real estate investments, compile those records as well to share with your lender.

Have Personal Financial Information On Hand

While lenders’ main focus is not on your personal credit score, providing your Colorado hard money lender with additional information regarding W-2s, paystubs, and credit history can help you get approved. Even though it’s not the main focus, lenders want to see that you have money in the bank.

Pro Tip: Save as much as you can before applying for a Colorado hard money loan.

Know Your Exit Strategy

Before investing in commercial real estate, you should know your exit strategy. How do you plan on paying back your Colorado hard money lender? Do you have multiple exit strategies in mind in case you encounter personal or real estate market changes? Lenders want to see that you have a plan. Below are a few common exit strategies for Colorado commercial hard money loans:

-Hold The Property Long Term For Cash Flow

-Sell Commercial Property

-Sell Other Investments

-Refinance Loan

  • Conventional
  • Subprime
  • New Hard Money

Pro Tip: Have a backup plan.

Show Your Interest

Are you in constant contact with your lender? Your lender wants to know that you are very interested in getting a hard money loan. By remaining in contact with your lender and providing the information they request in a timely manner, your lender will see that you really care, which will help your chances of getting a Colorado hard money loan over another borrower.

Pro Tip: Value your lender’s time by returning phone calls and providing them requested information promptly.

There are so many advantages to getting a Colorado hard money loan for your commercial real estate endeavor and there is no better hard money lender to work with than our dedicated team at Abbey Mortgage & Investments, Inc. If you are interested in getting a Colorado hard money loan or you have questions about if a hard money loan is right for you, fill out our free loan review and loan term options form or give us a call. We look forward to helping you fund your deal!