Many real estate investors are finding that banks are still leery of funding loans on commercial real estate.  Many banks, having been burned by poor lending judgment when real estate values fell in the “Great Recession,” are overreacting in today’s better commercial real estate climate, seeing it as too high-risk. If you’re having difficulties obtaining traditional financing in order to purchase a commercial property, then turning to a private capital lender for a bridge loan in Colorado may be a potential solution. In real estate investing the saying that “time is of the essence” is particularly true. You can speed up your application for a bridge loan by including the following items:

Photos: Take color photos of property; if there are buildings or other developments on it, be sure to take both interior and exterior shots.

Financial information:  If this is an income property then you need to have both for your own information and the property’s profit and loss statements for the past two years prepared for the lender. If you have a comfort level with your prospective private capital lender then you should include a current personal financial statement as part of your package.

Title insurance commitment:  The commercial Realtor should have ready a current title insurance commitment. If one is available giving it to the prospective lender will save time.

Loan purpose: Providing a short but clear “Executive Summary” of your commercial real estate bridge loan request is always helpful. Explain as much as possible about the property you wish to acquire, the reason you want to buy it, the amount of cash you have to put down towards the purchase, the amount of loan you are requesting, and your exit strategy for paying off the short term bridge loan.

Repairs: If repairs or renovations will be required, then an itemized list should be included in your application, especially if you will want financing included in the loan to cover the cost of them.

Rental state: If the property has rental units then it is important to provide a rent roll and lease summary.  A brief discussion of current vacancy is also appropriate.

Being prepared for your bridge loan application in Denver with these items will give you the best possible chance of getting your loan approved in a matter of weeks rather than months. In fact, many hard money lenders can approve a loan application in a few days if they have the proper information to start. Montegra Capital, a Denver, Colorado hard money lender, specializes in bridge loans for commercial real estate borrowers in the front-range area. You can contact us by email or phone for more information about our specific lending requirements.

This blog was written by Bob Amter, President of Montegra Capital Resources, LTD., a Colorado hard money lender.  [google_authorship] has been in the private capital lending business for 41 consecutive years.