We may be living through both the best of times and the worst of times.  It may the best of times because there are great buys out there for buyers who can get financing – but it may be the worst of times because commercial real estate financing is very difficult to get.

If the investor in commercial real estate has a great banking relationship, then go for it.  If your property is in Colorado and your bank is not helpful, you may want to consider working with a Colorado hard money lender.  How best to present your loan to a Colorado hard money lender?  Here are a few suggestions:

1. Organize your loan request.  Prepare an Executive Summary that gives the relevant facts: who are you – what size loan you want – what is the security for the loan – describe the property as simply as possible – discuss your exit strategy.  A short (no more than one page) description of the basic facts is essential for every Colorado hard money lender.
2. Include all relevant information in your loan package.  The Executive Summary is the first item but also include a current personal financial statement, a more detailed description of the property that will be the collateral property, income and expense (if appropriate) data on the collateral property for the past two years and current year to date, a copy of your purchase contract (if you have one), a copy of any surveys or ILCs, a copy of a title commitment (if there is one), a copy of your resume if available, etc.  A complete and professional package will make the right impression on any Colorado hard money lender – an incomplete disorganized package will do the opposite.
3. Before sending anything to your Colorado hard money lender, do some basic research before you apply.  Check out their website and find out what type of loans they like to fund.  Structure your application in a way that places you in the lender’s “sweet spot”.  If possible, get a referral from someone you know that also knows the lender (i.e. your banker, your attorney, broker or CPA).
4. Be open and honest in your presentation.  Don’t try to hide the fact that the taxes haven’t been paid on the property.  Disclose any environmental issues or if there are physical problems in the property that must be repaired.  Nothing works better than full disclosure – nothing is more negative than the Colorado hard money lender finding out serious issues after the fact.

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