Showdown: Banks Versus Commercial Colorado Hard Money Lenders

Finding financing for your Commercial real estate purchase or renovation can be confusing. Let’s look at two common options for financing: the banks and Commercial Colorado Hard Money Lenders.

Banks are the tried-and-true option for financing, whether it’s a mortgage, a small business loan, or a Bridge Loan. They’re the first-place people think about when they consider getting funding. Like all funding sources, they come with a range of pros and cons.

On the positive side, banks are well-established institutions, so funding from them can be counted on as secure. Because they work in bulk and are backed by solid sources, they can offer some of the lowest rates in the country and their fees are usually comparatively minimal. Their terms are set in stone, which can be a double-edged sword. You’ll know exactly what you’re getting up front, but it doesn’t leave much room for negotiation and doesn’t allow them to tailor the loan to your situation.

Commercial bank loans are also quite difficult to qualify for. They have benchmarks by which they measure your risk. If you don’t live up to them, you’re out. You’ll need a spotless credit score, a healthy account, and a financial history that’s free from any blemishes. For this reason, bank loans are best for investors who have great credit and no foreclosures, short sales, or bankruptcies in their past.

The Pros and Cons of Going with a Commercial Hard Money Lender

One alternative to bank lenders are Commercial Colorado Hard Money Lenders. Colorado Hard Money Loans come from private sources, so they aren’t as subject to regulations as funding from a bank or credit union. This gives them a variety of benefits. They’re much easier to qualify for — hard money is secured by collateral, so lenders are less interested in your history and your credit score and more interested in your plans. Even if you’ve had a bankruptcy or foreclosure in your past, you may still qualify for hard money.

Colorado Hard Money Loans also come through much more quickly. You can get pre-approved instantly, approved completely in a matter of days, and have the money in your account in 10-15 days.

On the con side, Colorado Hard Money Loans come with higher interest rates and shorter terms, usually around one year.

Commercial Colorado Hard Money Lenders in Colorado

As Commercial Colorado Hard Money Lenders in Colorado, we offer some of the most competitive rates and terms in the country. Our Commercial loans go up to a 90 percent loan-to-value ratio, flexible 3-60 month terms, and low-interest rates. We can fund your development! Give us a call to get started.

Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC
Hard Money Lender
Hard Money Loans
Hard Money Loan
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com
Dennis Dahlberg Broker/RI/CEO

About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.