Being a part of the Colorado community, up and down the front range for over 20 years is something we are proud of here at Abbey Mortgage & Investments. We’ve been providing a range of loan types to to people from Denver, Fort Collins, Loveland, Colorado Springs, Wheat Ridge, Golden, Boulder, and other Front Range towns and cities. But our bread and butter services have always been hard money and commercial loans. We’ve got a passion for seeing members of our community succeed in their investments, and we are happy to play a role in that success.

In previous posts, we’ve discussed myths associated with hard money loans and private money lenders. In doing so, we hope that we’ve been able to shed some light on a surplus of misinformation that exists on the internet today, specifically with regards to private money financing. But as for today’s post, we will focus more on the positives of hard money financing, or asset based lending, Read on if you are simply interested in hearing why you should get a hard money loan in general, and more specifically, why you should get one from your local hard money lender in Abbey Mortgage & Investments!

Hard Money Loans In General

A hard money loan, strictly speaking, is a loan which affords a private party, which could be an individual or a group, with the funding necessary to invest in a real estate opportunity that is typically time-sensitive. Also referred to as private money loans, bridge loans, asset based loans, rescue loans, transitional loans, or short-term loans, be aware that we may use these terms interchangeably throughout this post and those to follow. You’ve been warned!

Why Go With a Private Money Lender Over A Bank?

While we’ve discussed this question in previous posts, it’s a fairly integral piece to our business, so we might as well repeat ourselves to cover our bases and keep our prospective customers informed.

When it comes to securing real estate loans from national banks, or even local banks, things can get tricky. Banks tend to take in personal financial history, like credit score, into account more than someone like Abbey Mortgage & Investments. Hard money loans are more focused on equity that is tied up in property assets used as collateral than credit scores or x amount of dollars in your bank account. In addition to that, banks take much longer to approve the loan, even if you are able to get approved in the first place. We are talking about a difference between 90 days to half of a year(!) as opposed to the normal 5-10 day approval process that is associated with a bridge loan. The old adage “time is money” rings true in this instance.

Hard Money Loans For Developers

One of our most common types of clients are real estate developers. Across the board, developers who are in strong financial positions choose to go with private money lenders more often than banks. That trend alone busts the myth that only desperate people with little cash flow and a dearth of options choose asset based lending.

Developers choose to go with hard money loans for a variety of reasons. Some of those are listed below.

  • The developer might already have a line of credit established from their bank, but are in need of a bigger loan than the bank deems permissible under the terms of the current line of credit. Transitional loans can be a workaround in this regard.
  • There is a time-sensitive nature to the investment, and the developer doesn’t feel like spending weeks and months collecting equity from an assortment of independent investors. That time is much better spent focusing on find new investment opportunities.
  • There is a short-term window for the real estate opportunity that needs to be pounced on before a competitor does. The bank can take ages, as we’ve attempted to drill home to our prospective clients.

Why Choose Abbey Mortgage & Investments

We’ve established that private money loans can be a viable option for real estate developers. Beyond that, they can be a wise move for people working on rehabilitation projects, as well as a variety of other investment opportunities. But for now, let’s talk about Abbey Mortgage, your hard money lender in Denver, Fort Collins, Boulder, and most of the Front Range in Colorado.

For starters, we have Robert Kearney, who brings an incredible depth and breadth of experience to the table. He’s worked with countless private parties in the real estate world to help them efficiently meet their goals in a matter of days. Robert Kearney works with our staff to find creative solutions that might not always fit the cookie-cutter mold when it comes to Denver hard money loans.

Lynx Loan Fund, LLLP

One of these creative solutions has to do with our ability to fund partners. Robert founded Lynx Loan Fund in 2006 in order to offer a high risk adjusted return and capital preservation with hard money financing. Lynx Loan Funds, while not always being available on every loan, is a fantastic example of how we afford investors with consistent secured returns. The specifics of that process are too detailed for the purposes of this post, but you can find more information about this topic here, or just reach out to us!

What Sets Us Apart From Other Lenders

We take the stress out of private loans by walking through each aspect of the process with you. No 2 loans are the same, and with that in mind, we make a point to provide each partner with a tailored experience and loan that sets both investor and lender up for success. We are happy to work with other Colorado mortgage brokers and private parties alike to reach your goals. If you are looking for a fast-moving Colorado private lender that is invested in the ROI of your opportunity, choose Abbey Mortgage & Investments for reliable and affordable services. Reach out to us today so we can customize a plan based on your needs and goals. We would love to hear from you!