Phone: 303-778-0309

Address: 1685 S Colorado Blvd, Denver, CO 80222

Website: http://forrestfinancial.com/

States They Lend In: Colorado

Private Lender Providing Hard Money in Beautiful Colorado

 

Located in Denver, making hard money  loans is the sole focus of Forrest Financial Group. We provide short-term loans, sometimes called bridge loans. Our loans are secured by residential  or commercial real estate held for a business or investment purpose.  We are a direct private lender, using our own money and not a broker.

 

Hard Money Loans. It’s What We Do.

 

Forrest Financial Group, located in Denver, Colorado, provides hard money loans secured by real estate located in the State of Colorado. The types of real estate that can be used as collateral for a hard money loan include residential, retail, office, industrial, mixed-use, apartments, and vacant land. We also make fix and flip loans. Our niche is a loan amount between $100,000 and $2,000,000.

Our interest rates and fees are very competitive, among the lowest for Colorado hard money lenders.

Because we are a direct

private lender

, making real estate loans using our own funds, we are not hampered by the bureaucracy and red tape often found when dealing with institutional lenders.  To our borrowers, that means we are flexible and can act quickly.  No long, drawn-out application process here. A borrower looking for a hard money loan from us either gets a quick no or a quick funding.  When underwriting the loan, our primary consideration is the value of the real estate, not the credit history of the borrower

 

General Loan Guidelines

Below are our Denver hard money loan guidelines.

 

• Loan Size

  Our hard money niche is from $100,000 to $2,000,000. Can Forrest Financial arrange financing outside of our niche? Certainly, under the right circumstances and for the right borrower.  We do have the capability to arrange loans as large as $10,000,000.

 

• Property Location

  We will lend on real estate located anywhere in state of Colorado, not just along the Front Range.

 

• LTV (Loan to Value)

  The LTV on most loans that get funded today will be in the 50-65% range.  It is possible to get an LTV as high, 75% in some instances, if we can get comfortable that the market for a particular property is strong and is on the incline or the property is in a niche market area.

 

• Loan Term

  Typically the loan term will not be longer than 2 years. This works for most borrowers since hard money is definitely more expensive than conventional financing and is used temporarily until conventional financing can be arranged or the property sold. However, extension clauses can be inserted into the loan documents that allow the borrower to extend the loan beyond the maturity date if the loan is performing and circumstances with respect to the borrower and the property have not changed substantially from the time the loan was initiated.

 

• Interest Rate

  Our rates today generally range from 9-12%. Rates vary according to the LTV, property type, property location, borrower, etc. Forrest Financial's hard money loan rates are generally lower than most other hard money lenders active in Colorado.

 

• Origination Fee

  Our origination fees are typically 2-4, points. Again, depending on the borrower, property, location, loan term, etc.

 

• Closing Costs

  All loans are closed in the office of a title company.  The borrower is responsible for all costs involved, (a) a lender's title insurance policy, (b) closing/settlement fee, and (c) recording fees.

 

• Loan Documents

  We try to keep paperwork to a minimum, but the two loan documents absolutely necessary are a promissory note and a deed of trust.  Other documents often needed  include a loan guaranty, a disclosure of risk factors, and subordination agreement.

 

• Timing

  Realistically, it is going to take at least a week to fund a loan from the time borrower submits a request. Small loans, under $500,000, are generally the quickest and easiest to get done. Larger loans usually take longer, up to 4 weeks, because there are more parties involved. Can a loan get funded in a few days? Yes, if our desk is clear, the borrower has all the information needed immediately at hand, the property is free of any peculiarities and the loan request is not pushing the envelope with respect to LTV, term, interest rate, etc.  We have funded loans with as little as two days notice.

 

Commercial Hard Money Loans

 

Below are our guidelines for commercial hard money loans.  We make loans secured by all types of commercial real estate (industrial, office, retail, mixed-use, apartment projects).

 

Commercial Hard Money Loans

 

• Loan Amounts

  $100,000 to $2,000,000.

 

• Property Location

  We focus on property located along the Front Range of Colorado, from Fort Collins to Colorado Springs. (See FAQ below.)

 

• LTV (Loan to Value)

  Our loan amount will be no more than 60-70% of the property value today.

 

• Loan Term

  We're flexible, however the term will generally not be longer than 2 years.

 

• Interest Rate

  Our interest rate can be as low as 9%, depending on the property, the location, the LTV, maturity date and the borrower. Borrower makes monthly, interest-only payments.

 

• Prepayment Penalty

  None.  You may prepay your hard money loan from us at any time, without penalty.

 

• Origination Fee (Points)

  Origination fee is typically 2-5, points.  This fee is dependent on the borrower, property, location, loan term, etc.

 

• Application Fee

  None

 

• Appraisal Fee

  An appraisal may be required, but not always.

 

• Inspection Fee

  An inspection fee may be required, but not usually

 

• Timing

  If there are not any major issues, 2-4 weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.

 

FAQ

 

1. Will you allow subordinate financing?

   Yes, we will allow a second lien position behind our first lien position.

2. Will you make a commercial real hard money loan secured by real estate not located along the Front Range?

   Yes.  We will consider making a hard money loan elsewhere in Colorado, and have done so.  However, depending on the location, you may incur additional expenses, including, but not limited to, an inspection fee and an appraisal fee.

3. Can I qualify for a loan if my credit history doesn't look stellar?

   Yes.  While we will pull your credit report and examine additional financial information, our decision to make the loan will be based primarily on an inspection of the property itself, our opinion of the value of the property and your exit strategy.  We understand that bad things can happen to good people.

4. Will you extend my commercial hard money loan if I reach the maturity date and have been unable to get the property sold?

   Most likely, yes, provided you have made your payments on time, are not in default on any other loan provisions and the project fundamentals are substantially the same as those at the time the loan was originated.  Our loan documents contain an extension provision.

5. Will you allow a cash-out refinance?

   Yes, after closing a commercial hard money loan, we will allow you to walk away from the closing table with cash in your pocket if our underwriting justifies a loan amount larger than that needed to pay off an existing loan(s).

Fix and Flip Loans

 

Below are our fix and flip loan guidelines for property located in Denver and surrounding areas.

 

• Loan Size

  $100,000 to $700,000.

• Property Location

  We focus on fix and flip loans secured by property located in Denver or along the Front Range of Colorado, from Fort Collins to Colorado Springs.

• LTV (Loan to Value)

  Our maximum loan amount will be 60% of the ARV (After Repaired Value).

• Loan Term

  We're flexible.  Pick your maturity date, 3,6,9 or 12 months.

• Interest Rate

  Our interest rate can be as low as 9%, depending on the property to be rehabbed, the location, the LTV, maturity date and the borrower. Borrower makes monthly,interest-only payments.

• Prepayment Penalty

  None.  You may prepay loans from us at any time, without penalty.

• Origination Fee (Points)

  Origination fee is typically 2-4, points.  This fee is dependent on the borrower, property, location, loan term, etc.

• Application Fee

  None

• Appraisal Fee

  None.

• Inspection Fee

  None,

• Experience

  Some experience with fix and flip property is required unless the borrower is a real estate agent, contractor, architect or has other applicable real estate related experience.  .

• Timing

  We have funded fix & flip loans as quickly as 2 days from the time we received the request.  Two weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.

 

FAQ

 

1. Will you lend 100% of the acquisition price plus rehab costs?

   Yes, provided you can further secure the loan with sufficient equity in another piece of real estate. Our borrowers must have some "skin in the game."

2. Will you make fix and flip loans on property not located along the Front Range?

   Yes.  We will consider making loans anywhere in Colorado.  However, depending on the location, you may incur additional expenses, including, but not limited to, an inspection fee and an appraisal fee.

3. Can I qualify for a loan if my credit history doesn't look stellar?

   Yes.  While we will pull your credit report and examine additional financial information, our decision to make the loan will be based primarily on an inspection of the property itself, your rehab plans and our opinion of the value of the property following rehab.  We understand that bad things can happen to good people.

4. Will you extend my loan if I reach the maturity date and have been unable to get the property sold?

   Most likely, yes, provided you have made your payments on time, are not in default on any other loan provisions and the project fundamentals are substantially the same as those at the time the loan was originated.  Our loan documents contain an extension provision.

 

Residential Hard Money Loans

 

Below are our guidelines for residential hard money loans, 1 to 4 unit properties. The proceeds of the loan must be used for a business purpose. Refer to our special guidelines for Fix & Flip Loans.

We do not make loans on 1-4 unit properties occupied by the borrower or any of the borrower's immediate family.

 

• Residential Hard Money Loan Size

  $100,000 to $2,000,000.

 

• Property Location

  We focus on property located along the Front Range of Colorado, from Fort Collins to Colorado Springs. (See FAQ below.)

 

• LTV (Loan to Value)

  Our loan amount will be no more than 60-70% of the property value.

 

• Loan Term

  We're flexible, however the term will generally not be longer than 2 years.

 

• Interest Rate

  Our interest rate can be as low as 9%, depending on the property, the location, the LTV, maturity date and the borrower. Borrower makes monthly,interest-only payments.

 

• Prepayment Penalty

  None.  You may prepay your residential hard money loan from us at any time, without penalty.

 

• Origination Fee (Points)

  Origination fee is typically 2-5, points.  This fee is dependent on the borrower, property, location, loan term, etc.

 

• Application Fee

  None

 

• Appraisal Fee

  An appraisal may be required, but not usually.

 

• Inspection Fee

  An inspection fee may be required, but not usually

 

• Timing

  If there are not any major issues, 2-4 weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.  We have closed smaller loans in as little as 2 days.

 

FAQ

 

1. Do you make fix & flip loans?

   Yes. See our fix & flip loan guidelines.

2. Will you allow financing subordinate to my residential hard money loan?

   Yes, we will allow a second lien position behind our first lien position

3. Will you make a residential hard money loan secured by real estate not located along the Front Range?

   Yes.  We will consider making a hard money loan elsewhere in Colorado, and have done so.  However, depending on the location, you may incur additional expenses, including, but not limited to, an inspection fee and an appraisal fee.

4. Can I qualify for a loan if my credit history doesn't look stellar?

   Yes.  While we will pull your credit report and examine additional financial information, our decision to make the loan will be based primarily on an inspection of the property itself, our opinion of the value of the property and your exit strategy.  We understand that bad things can happen to good people.

5. Will you extend my residential hard money loan if I reach the maturity date and have been unable to get the property sold?

   Most likely, yes, provided you have made your payments on time, are not in default on any other loan provisions and the project fundamentals are substantially the same as those at the time the loan was originated.  Our loan documents contain an extension provision.

6. Will you allow a cash-out refinance?

   Yes, we will allow you to walk away from the closing table with cash in your pocket if our underwriting justifies a loan amount larger than that needed to pay off an existing loan(s).  However, the cash out must be used for a business purpose.  It cannot be for personal use, such as paying down credit card debt.  Forrest Financial does not underwrite or fund consumer loans

 

Hard Money Land Loans

 

We make hard money land loans secured by property located in Colorado, provided the land is zoned for residential or commercial use. See guidelines below.

 

• Loan Size

  $100,000 to $2,000,000.

 

• Property Location

  We focus on property located along the Front Range of Colorado, from Fort Collins to Colorado Springs. (See FAQ below.)

 

• LTV (Loan to Value)

  Our hard money land loans will generally not exceed 25-50% of the value of the property.

 

• Loan Term

  We're flexible, however the term of our land loans will generally not be longer than 2 years.

 

• Interest Rate

  Our interest rate can be as low as 10%, depending on the property, the location, the LTV, maturity date and the borrower. Borrower makes monthly, interest-only payments.

 

• Prepayment Penalty

  None.  You may prepay hard money loans from us at any time, without penalty.

 

• Origination Fee (Points)

  Origination fee is typically 2-5, points.  This fee is dependent on the borrower, property, location, loan term, etc.

 

• Application Fee

  None

 

• Appraisal Fee

  An appraisal may be required, but not always.

 

• Inspection Fee

  An inspection fee may be required, but not usually

 

• Timing

  If there are not any major issues, 2-4 weeks is generally more than enough time to gather the information needed, inspect the property and schedule a closing with a title company.

 

FAQ

 

1. Will you allow subordinate financing?

   Yes, we will allow a second lien position behind our first lien position.

2. Will you lend on vacant land not located along the Front Range?

   Yes.  We will consider hard money loans elsewhere in Colorado, and have done so.  However, depending on the location, you may incur additional expenses, including, but not limited to, an inspection fee and an appraisal fee.

3. Will you lend on vacant land zoned for agricultural purposes only?

   Yes, We would consider making a loan against land currently zoned ag if today's highest and best use is zoning that would allow commercial or residential development and the likelihood of obtaining such new zoning appears reasonably feasible.  If agriculture is the likely use of the property for the foreseeable future, we would probably not be interested.

4. Can I qualify for a loan if my credit history doesn't look stellar

   Yes.  While we will pull your credit report and examine additional financial information, our decision to make the loan will be based primarily on an inspection of the property itself, our opinion of the value of the property and your exit strategy.  We understand that bad things can happen to good people.

5. Will you extend my loan if I reach the maturity date and have been unable to get the property sold?

   Most likely, yes, provided you have made your payments on time, are not in default on any other loan provisions and the project fundamentals are substantially the same as those at the time the loan was originated.  Our loan documents contain an extension provision.

6. Will you allow a cash-out refinance?

   Yes, we will allow you to walk away from the closing table with cash in your pocket if our underwriting justifies a loan amount larger than that needed to pay off an existing loan(s).

7. Do you make development loans?

   No, We do not make loans to put in infrastructure or for vertical construction.  We do not have the staff to process draw requests and monitor the development process.

 

Colorado Loan Evaluation Criteria

 

There is no set of criteria that is standard or unique to the hard money lending universe. Most hard money lenders have a niche within which they operate (loan size, property location, property type, etc) and will only consider loans that fall within that niche. However, a general set of loan evaluation criteria follows:

Property

 

• Location

  Is the property in the lender's target area or in an area the lender understands? Is it easy to evaluate the property because there are similar properties in the immediate area? Are there issues with respect to access, visibility, fire protection, utilities, etc. Would the lender be comfortable owning and managing a property in that location in the event the borrower defaults and the lender forecloses? Much of the time the lender's assessment of the location is subjective based on past experience.

 

• Value

  Being able to determine the current value of the property is, of course, vital. "Current" is the operative word when it comes to value today. What the property was worth two years ago or will be worth once the real estate market rebounds is of no import to a hard money lender today. What will the property sell for tomorrow is the question they are looking to answer. Assistance from appraisers and real estate brokers may be used to aid in determining value or confirming the in-house opinion.

 

• Type

  No hard money lender is equally comfortable with every type of real estate. Each has a bias based on past experience , the current real estate environment and/or advice from other industry professionals. That doesn't mean they won't make a loan on a property type with which they are less familiar. They will just be conservative when they do so - possibly more conservative than another lender who is more familiar with that type of real estate.

 

• Marketability

  How quickly can the property be sold if need be? Would a quick sale achieve a price sufficient to retire the loan in full? How long would the property need to be on the market to maximize the value?

 

• Environmental Issues

  Are there hazardous materials on the property or indications that hazardous materials may be present? This is of particular concern when dealing with older properties or properties where former occupants were likely to have used hazardous materials. A Phase I Environment Site Assessment made need to be ordered to determine the extent of the issues.

 

• Title Issues

  Does the borrower have title clean to the property? Are there liens, easements, use restrictions or other title issues that the lender would find objectionable? All lenders will require a lender's title policy be issued by a credit-worthy title insurance company effective on the closing date.

 

• Income

  Does the property generate any income that will be used to service the loan. What is the certainty of that income during the loan term?

 

Borrower

 

Even though hard money lenders focus on the collateral, many are taking a much harder look at the borrower since the real estate bubble burst. Borrowers who are weak financially can still get funded but the amount may less than could be obtained if their financial picture were better.

 

• Net Worth

  What is the borrower's net worth in relation to the value of the property and the loan amount requested? Is the borrower too highly leveraged (too much debt relative to the value of his assets)?

 

• Liquidity

  How much of the borrowers net worth is in cash or investments that could be readily converted to cash? What is the liquidity in relation to the requested loan amount? If the borrower doesn't have a consistent stream of income, are the cash reserves sufficient to comfortably service the loan?

 

• Income

  Does the borrower have sufficient income, either from the property or from external sources, to comfortably service the loan? What is the certainty of that income?

 

• Credit History

  What is the borrower's credit score? Any prior loan defaults? Prior bankruptcy? If the credit history isn't stellar, can the problems be explained to the lender's satisfaction?

 

• Real Estate Investment Experience

  How much real estate experience does the borrower have? Does the borrower understand how to deal with unanticipated bumps in the road?

 

Loan Structure

 

• LTV (Loan to Value)

  The LTV is probably the most critical of all the criteria. Since the hard money lender is looking to the property as the ultimate source of repayment, he wants a margin of safety and will loan only a percentage of the property value, typically 50-70%, depending on the lender. If the borrower is planning to use some or all of the loan proceeds to improve the property, the lender may consider the ARV (after repair value) in addition to the current value or purchase price.
  .

• Lien Position

  Because of the uncertainty in today's real estate market, most hard money lenders are not making second mortgages and will require that their loan be a lien in first position. The loan will be secured by deed of trust and recorded to securely establish that position.

 

• Term

  Hard money lenders make short-term loans, typically 6 months to 2 years. Terms of longer duration may be possible or extension provisions inserted into the loan documents in certain situations.

 

• Interest Rate

  The interest rate will vary according to the lender's desired return on investment and on the rate being charged by competing hard money lenders making loans on similar properties.