Blog

Denver Commercial Real Estate Renovation Loan Applications


July 25, 2018

One of the most popular mediums for investment opportunity in today’s real estate market involves purchasing a property, making renovations and upgrades before ultimately selling it for what one hopes to be a considerable profit. If managed correctly and properly researched then the return on an investment can be extremely beneficial. So long as the initial purchase price and cost of renovations fall below the eventual sale price then money can be made - often a considerable amount depending on the location and property type.

The above described practice has even earned its very own nickname, now commonly referred to as “flipping” properties. Investors purchase real estate with the sole intent of flipping it to turn a profit before moving on to the next structure for a similar return. Add them all up and eventually there is a considerable amount of money to be made, should all of the ins and outs involved in renovating wind up benefiting the initial investor. Not only has this practice become more common in almost every residential real estate market across the United States but it has garnered enough of an interest that many of the television shows on home improvement channels now have specific programs dedicated to the many different aspects associated with the practice.

While the more prevalent usage of “flipping” has revolved around the residential real estate world, the same opportunities exist in the commercial realm as well. Commercial real estate can even offer a more money-making venture as the properties are commonly rented upon renovation which creates a system for earning well over the initial costs of paying for a loan well into the future. This extra income can then be re-invested into another property type or used at the investor’s own discretion at a later date.

Commercial renovation loans from a hard money lender present one option for funding a specific project that can circumvent the traditional bank. These more traditional lending opportunities rarely offer a full amount for specific renovation types and can fall short in terms of their availability due to increased measures allocated around their lending opportunities. Instead of having to rely on a traditional source which can limit the availability and renovation practice, using a hard money lender offering a useful commercial renovation or rehabilitation loan can be significantly more beneficial for its intended purpose.

These applications and appointments differ from the more traditional methods in a variety of methods and there are numerous factors to consider when utilizing a commercial renovation loan. To begin, the property must properly be evaluated in the current state prior to making any of the forecast improvements. Once these are implemented then the overall value of the property will increase but determining the cost for these renovations in addition to what the real estate may rent or sell for at the end of the process is a key component for any commercial remodeling loan type.

A variety of measures must be implemented when determining the financing for such a loan, even with hard money lending but these are measures put in place to protect both the investor and establishment from which the funds are issued. Details regarding contractor estimates for the work, proper measurements, the intended use of a property and its location must all be considered before a deal is likely completed.

Structuring commercial renovation loans essentially come in all shapes and sizes. For this purpose no two organizations are going to offer a similar outcome and the best interest of the investor must be taken into consideration when ultimately determining how he or she is going to finance the necessitated improvements for establishing a productive piece of real estate into the future, on the open market, or following a rental agreement and continued productivity from the payments received on a monthly basis. These monies are essential and all will help to ensure the investor completes a successful “flip” of the property but attention to detail is needed when finalizing all the complete aspects of a renovation or rehabilitation loan - especially when dealing with commercial real estate as opposed to residential housing.

For this reason, no two loans will be identical but not every lender is willing to be flexible in extended a potential solution to a remodeling issue. Even projects which have begun construction but will not complete the original components can be given a second opportunity (potentially more) with the flexibility of a renovation loan and the detailed capabilities which can be derived from taking into account the varying aspects of each person’s personal life.

Borrowing money and the institutions from which this type of financing would be accessible are extremely limited. Finding someone you can trust who is able to potentially fund both a renovation from the beginning or other outlet which has fallen short of expectations and left unfinished can be extremely helpful given the situation. Each loan is different and the property conditions - location, state, wear, tear, age, accessibility, etc. all will have some type of variance on the degree of funding available. This, in turn, then makes the production capabilities differ depending on the requirements for each loan.

If you are considering investments within any commercial property type divisions, are in need of a hard money lender, or are ready to move forward with a contact, then come see the experts at COHI Capital Private Equity Lending who can help you determine and analyze your individual needs. After their free consultation, quality experts can offer meaningful advice and help to set up a beneficial plan immediately for all involved parties in order to achieve the goals of everyone involved in the process. Whether the monies will be needed for refinancing or outright purchase, the best plan available will be applied specifically to your application. They will decide what type of loan will work best for you drawing on experience and benefits of finding successful funding needs for over a decade. A full detailed review of your situation can be completed in addition to resolution issues and monetary considerations. Request some additional information by contacting COHI today. Call 970-922-3277 or contact us for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.
Read More...

Up Against the Clock? Hard Money Lenders Denver Can Help


July 11, 2018

The real estate market is a complicated world but can pay big dividends if calculated and developed appropriately. Many individuals throughout history have made their fortunes by investing in properties or developing areas of high growth as population centers continue to flourish across the country. Big cities have always been the epicenters of financial being, providing a wide array of investing opportunities within the real estate realm but other areas have also established quite the bankroll through purchasing different type properties or even just land.
 
Property types vary widely and those who have the means to venture into the real estate market can utilize their expertise depending on which options they choose. Typical residential opportunities for single-family homes make up a large portion of the market but other types of deals exist with even higher earning potential. Commercial, land and non-traditional places provide more investment potential. These include places similar to storage facilities, strip malls, apartment complexes, industrial parks and many other types of structures.
 
When looking to invest in these there are many factors to consider. Understanding why investors use hard money loans is critical to knowing how to benefit from the process. One of the main features to consider is often the timing of a deal and hard money loans are a much quicker process than that which is required by banks or more traditional methods. Timing is key and utilizing the process can be pivotal but knowing how and when to invest and finding the right opportunity is important.
 
Some projects will begin but prior to completion, original funding falls through leaving an incomplete scene but providing a chance for another investor to take over with a new source of income. These circumstances are often ideal opportunities for someone with good timing and fund capability which can be maintained and administered within a reasonable timeframe. Hard money lending can help to provide the answer for each of these circumstances and is extremely beneficial when your back is up against a wall. The reasons for an almost immediate availability revolves around the process for which hard money lending takes place.
 
Instead of speaking with a broker, who will then have to take an application to a board or another individual, when contacting us you will always speak with a direct lender. Eliminating this extra step in the process allows for a faster turnaround time and almost immediate notification of your fund availability. The application process is quick and easy but with every loan being of a different variety, specific care is given to each and every request.
 
Often the need for an appraisal of the property can also be avoided with a hard money loan. As with any type of real estate, these evaluations take up time. Getting on the schedule and then making sure the report is submitted in a timely manner can drag out the process in addition to adding other potential shortfalls which could arise from such an evaluation. With hard money lendings the equity available in the property itself can potentially serve to assist in the monetary needs and thus allow an appraisal to be passed.
 
Not only will the scheduling of such an event delay or potentially derail a transaction but the cost of having a separate appraisal will serve to add an unnecessary expense to the deal could it be avoided. This not only helps to speed the process but also saves money for all parties involved in a specific contract because the money will not be spent on an action that pushes back the date of close for potentially weeks.
 
Instead, once a term sheet has been issued and signed by the borrower, a site visit will be scheduled to ascertain the use and equity in the property. This takes place almost immediately and serves to speed up the entire process considerably for everyone. Following a successful site visit, a title company then issues insurance and the loan will close and fund.

All dealings with more traditional funding sources in property, especially commercial real estate can take months for the deal to be completed. The association with all involved parties, inspections, appraisals, and organizing everyone to be on the same schedule only extends the timeline, even if executed appropriately. For hard money lenders, the process from initial contact requesting more information specific to your desired transaction, all the way to closing and having a properly sourced commercial deal completed can normally be finalized in just one to two weeks.
 
Needs from $50,000 to $3,000,000 are easily funded through our process which is an amazing turn around for such an amount. However, no loans for consumer or personal and family use are administered. Instead, the focus is on commercial or investment properties and land loans. These provide the best opportunities for investors and when needed in a timely manner can be fully funded and closed in a short timeframe.
 
For over a decade the people of COHI have been funding transactions across Colorado and Hawaii. Taking time to give special detail and attention to each individual loan, type and application allows for a personal commitment to excellence and eases the tense stress that is often associated with any type of purchase within this magnitude. Time only adds to the strenuousness of such a deal and knowing that your application or request for information will be answered quickly followed by a smooth and efficient funding process all the way through closing allows you to enjoy the purchase instead of being worried about the inner workings and mountains of paperwork behind the deal.
 
If you are considering investments within any commercial property type divisions, are in need of a hard money lender, or are ready to move forward with a contact, then come see the experts at COHI Capital Private Equity Lending who can help you determine and analyze your individual needs. After their free consultation, quality lenders can offer meaningful advice and help to set up a beneficial plan immediately for all involved parties in order to achieve the goals of everyone involved in the process. Whether the monies will be needed for refinancing or outright purchase, the best plan available will be applied specifically to your application. They will decide what type of loan will work best for you drawing on experience and benefits of finding successful funding needs for over a decade. A full detailed review of your situation can be completed in addition to resolution issues and monetary considerations. Request some additional information by contacting COHI today. Call 970-922-3277 or contact us for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.
Read More...

Commercial Real Estate Denver Investment Opportunities


June 27, 2018

The real estate market has ebbs and flows much like the New York Stock Exchange but knowing both when to invest and what properties to take under consideration can make all of the difference in your financial portfolio. Similar to being aware as to which stocks will eventually end up giving an investor their biggest return on a profit, the real estate market can do almost the exact same thing if properly orchestrated creating monetary benefits for an individual’s pocketbook and bank accounts.

While this can be a stressful endeavor, it can also be an amazing experience and one that if properly executed will have lasting benefits. A variety of measures must be considered when deciding which properties to undertake as a potential real estate investment but when these things are considered and the money is readily available, then creating a serviceable market for a potential business becomes a reality.

Much like any other profession there will be highs and lows as not every piece of real estate will be a home run, stringing together more positives than negatives is key to a sustained relationship within the world of real estate. These successful opportunities help to keep an investor on the right track and shortcomings, though hopefully few and far between, should be utilized and learned from for future corrections.

Similar to residential real estate, the commercial market carries many of the same qualifying factors when deciding whether or not a potential property is worth the time and money for an investment. There are a number of factors to consider but these few critical components are shared by both worlds of investing.

Property Location

Location, location, location - often the high point of real estate and depending on the status of a property and location can be a qualifying factor in and of itself regardless of the physical condition. If a property is in a prime spot for potential business opportunities or otherwise creating a necessary function for investment then often the physical state of a building can be overlooked in order to justify purchase.

Locating a prime piece of real estate for commercial functionality also means taking into consideration the different options a building may provide for a future investor. If you are looking solely at renovating and flipping a property for profit, then the location must be instrumental in helping to provide an ample amount of business opportunities for future buyers.

If so, then considering the neighboring businesses and market will be important to deciding if the return on investment would be beneficial. For instance, if a fast-food restaurant has gone out of business and the building remains vacant but two or three other, more prominent, businesses have recently moved into the neighborhood then location may not be the first and foremost important aspect when considering an investment.

Perhaps the more recent additions of other similar type establishments caused the primary business to suffer, creating the closure. For this reason, even if the building was once in the perfect spot for operation, taking a chance that one could purchased and renovate the property with intentions of another similar business taking over ownership in the future may not be the best idea.

However, if you can change the intended purpose of a building during a renovation process then the location could be a key factor in selling the property later and creating a good return on your investment.

Tax Evaluation and Appraisal

The tax bill for any piece of real estate is a “behind the scenes” type of expense which must be considered when determining the potential investment benefits of a piece of real estate. While buyers are likely to consider the tax implications because values are often based in or around these figures, knowing them up front for investment purposes is critical.

It remains possible to have a property reassessed for tax value purposes but the process can be daunting. Depending on the timeline for flipping an investment, knowing the evaluation before hand and ensuring it will not change much should be considered.

Appraisal prices are also a key component of the real estate market as any property that is changing hands is often subject to an appraisal. During this step, an outside agency visits the site and determines the overall market value for the structure at present time.

Appraisers take into consideration many different factors, like location, age, safety and shape of a property as well as the current market conditions. The simple principle of supply and demand is appropriately fitting here as industrial and business buildings may not be readily available in a certain area, increasing the overall value of these types of structures for potential investors and buyers.

Bottom Line

The absolute lowest available price for a piece of real estate at which one would sell their property and also the final outcome of an event. Both meanings described in layman’s terms and appropriately inserted here into the real estate investment market.

Each presents a unique factor for consideration when determining if investing is the right option on a particular structure. Obviously, the bottom line for a seller will be important as an investor while also considering what the same number will be once renovations and improvements have been made. Knowing that an increase is expected and will be worth all of the initial process is vital to making sure you are making money over the long haul.

This entire process also is important to consider the end result or bottom line’s other definition. Ultimately, being able to accurately project the future of a transaction and investment will help in establishing a consistent means of income from flipping real estate on the commercial market.

If you are considering investments within any commercial property type divisions, are in need of a hard money lender, or are ready to move forward with a contact, then come see the experts at COHI Capital Private Equity Lending who can help you determine and analyze your individual needs. After their free consultation, quality experts can offer meaningful advice and help to set up a beneficial plan immediately for all involved parties in order to achieve the goals of everyone involved in the process. Whether the monies will be needed for refinancing or outright purchase, the best plan available will be applied specifically to your application. They will decide what type of loan will work best for you drawing on experience and benefits of finding successful funding needs for over a decade. A full detailed review of your situation can be completed in addition to resolution issues and monetary considerations. Request some additional information by contacting COHI today. Call 970-922-3277 or contact us for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.
Read More...

Everything You Need to Know About a Commercial Loan - CoHi Colorado


May 30, 2018

Utilizing a commercial loan for your business can be an intimidating process, one that can seem inaccessible and overwhelming. The process of receiving a commercial loan is one that requires a company to have its financial house in order, but it can be a valuable and useful tool to utilize for a small business looking to fund its growth prospects. A commercial loan can be used to expand a business’s operations and improve the delivery of services, allowing a company to grow as needed. If you or your business are interested in receiving a commercial loan, here are a few things you need to be aware of.

Loan to Value Ratio

The loan to value ratio is something measures the value of the loan versus the value of the property or asset. This is used to determine how much a loan can be given out by the lender to the entity that is receiving the loan. Typically, the total amount of money that can be loaned at to a commercial entity is capped at 75-80% of the value of the property. This means that a company is restricted from borrowing too much in order to purchase a property or asset, and must put down a significant down payment in order to receive a commercial loan.

The more a company is able to afford to put down, the better the terms of their commercial loan, as a lender will be more likely to give a beneficial loan. In recent years, there have been a development in this sector called a non-conforming commercial loan. This type of loan allows a commercial entity to borrow at a loan to value ratio of up to 90%.

Who Is Eligible for a Commercial Loan

An important aspect to be aware of is which entities are able to receive a commercial loan. Although there are instances where an individual is able to receive a commercial loan, the most likely scenario is one where a commercial loan is given to a corporation or some type of commercial entity. This can include a limited liability corporation (LLC), an S Corporation, as well as a trust or fund.

In addition to being a legally recognized commercial entity, an organization or individual must show that they have a strong financial history. This includes a good credit score as well as no serious amount of outstanding debt, which can limit a commercial entity’s ability to receive a loan from a respected financial institution. If a commercial entity attempts to receive funding with poor credit, its chances of receiving funding will be severely limited and if a loan is acquired then the terms will not be favorable to the lendee.

If a commercial entity or company does not have a thorough and extensive enough of a financial history to present to a financial institution, it can acquire a commercial loan by putting up the necessary collateral as a way to guarantee the loan. Individuals have put up their homes or other valuable assets as a means to acquire a loan. While this is not the desirable situation for a company to be in, it does provide an option for those entities that do not have a long financial history.

Financial Institutions Constantly Change Their Requirements

It is important to understand that the terms offered by a bank one month may not be the same a few months later. This is because a bank’s financial portfolio is always evolving and factors outside of the relationship with an individual entity can affect the terms of a loan. If a bank takes on too much financial liabilities and its portfolio is affected by various economic factors, it can create a scenario where a commercial loan can become easier or more difficult to attain.

A company’s portfolio can impact the overall terms that it sets with companies that are seeking a commercial loan. Loan to value ratios can shift, either in the positive or negative direction. If you are turned down for a loan by a financial institution, it may be a good idea to check back in with them a month or two later, as their LVR rates may have shifted to become more beneficial to an entity seeking a loan.

Your Company’s Cash Flow

If you are seeking a commercial loan from a trusted financial institution, you will want to be able to show that your company or business has a steady cash flow. Being able to show significant and consistent cash flow to your lender will greatly improve your chances of being approved for a loan. It will also help in regards to the terms of a loan that you receive.

It is important to have the ability to show a maximum cash flow to a lender, as they will want to see at least 1.2 times the cash flow versus the amount of debt you have. This is so you have some leeway in regards to paying off your debt. If your expenses are too close to the amount of debt you have, a financial institution will be much less likely to provide you with the necessary funding, as there will be dramatically less room for error. It is important to have your finances in order and realize how much cash flow you have coming in prior to meeting with a lender, as your chances will be much greater with a healthy stream of money coming in.

Come see the experts at COHI Capital Private Equity Lending. We are happy to help you assess your needs and create a beneficial plan immediately. We will help you decide what type of loan will work best for you, as we have fulfilled successful funding needs for over a decade. If you would like a full detailed review of your situation, this can be completed in addition to any other resolution or monetary needs that you require. Request additional information by contacting COHI today. Call 970-922-3277 or contact us for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.
Read More...

Non-Traditional Denver Commercial Real Estate Property Types


May 16, 2018

Real estate moguls are constantly perusing the papers, books, pamphlets, and internet for potential properties that may be their next investment opportunity. While the options for consideration typically revolve around more traditional business practices, such as strip mall real estate, office parks, vacant storefronts, and industrial buildings, the existence of other properties can also serve to benefit parties willing to take a chance on more uncommon retail/rental option.

The existence of these buildings and opportunities is apparent but often overlooked because funding for such investment types can be difficult to attain. The recent market structure and availability of sources to back purchases of both land and non-traditional business properties has led to a decrease in individuals seeking to profit from the sell or revitalization of such buildings.

For those that are willing to complete the necessary steps in order to finalize a deal with such a consideration, the results can be extremely beneficial. However, the involvement for such a transaction will more often now involve a hard money lending source to assist matters. Just as the funding capabilities apply to traditional practices, these opportunities exist for this realm of both purchases and financers.

Some of the more non-traditional types of real estate offerings which may utilize a hard money lending source are detailed below.

Self-Storage Facilities

These types of establishments have been popping up across communities at a steady pace over the past few years. Landowners with intentions of making even more money via their product can add a self-storage facility and begin to generate income with minimal upfront costs and upkeep required.

Initially, these projects were largely minimally funded in an effort to increase gains but refinancing opportunities and a little refurbishing can bring such a facility back to life and make it profitable once again. While a traditional funding source may balk at this investment opportunity, depending on the characteristics and details of a deal, hard money lending may be a viable option for someone willing to do their homework on a property.

Hotels

Depending on the traffic and location, a vacated property could be repurposed into a gold mine of an opportunity if handled correctly. Hotel buildings typically will not serve any other purpose due to their design characteristics but revitalizing an existing vacated property could be beneficial.

If no interest evolves from a sizeable player in the hotel industry, a small business owner may be just the person needed to back an attempt at remodeling or revamping the property in question. Depending on the characteristics of the deal, a hard money loan may be the perfect solution. Once financed, the project could potentially be a windfall if executed correctly.

Senior Housing

In similar fashion to a hotel, senior living facilities are also a unique real estate property type requiring a specific investor and financing application. Whether the current property is undergoing a complete renovation following a period of abandonment or is simply changing ownership roles, the need for money to finance either deal is evident.

As population numbers increase and medical advancements continue to prolong the average lifespan, a need for more of these facilities will become evident. Once achieved, the senior housing choices for real estate property types are plenty.

Age-Restricted Communities such as senior apartments where adults typically 55-years and older live independently is an option for those not yet needing any type of assistance with their daily lifestyles.

Assisted-Living and Nursing Homes are other available options for potential real estate investments. These two would also require some type of professional care either on a limited or full-time basis, depending on the current or desired property function.

Student Housing

Likewise, student housing can be another option for non-traditional real estate investment purposes. These units are likely located in a city or town with some type of continuing education facility. Whether backed by a major university or smaller community college, both can be pivotal players in helping a student housing opportunity to flourish.

Warehouses

Another non-traditional real estate investment opportunity lies within the ownership of warehouses. Similar to the investment proceedings behind personal storage facilities, a warehouse owner can then lend storage space to those in need or house their own belongings.

Either way, the real estate property requires ownership and a potential hard money loan for funding purposes. Whether an investor is going to make personal use of such a facility or use it to generate even more potential income will vary on a case by case basis.

The takeaway is to realize that no matter what property you are looking at, someone, somewhere is the owner. These individuals often didn’t inherit their money making ventures but instead took the necessary steps to acquire the real estate and in doing so, became a small business or investor at the time. Hard money loans are the vehicle by which many of these non-traditional types of real estate are funding and can help should you find yourself in a similar situation.

If you want to invest within any of these property type divisions, are in need of a hard money lender, or are ready to move forward with a contact, then come see the experts at COHI Capital Private Equity Lending who can help you determine and analyze your individual needs. After their free consultation, quality experts can offer meaningful advice and help to set up a beneficial plan immediately for all involved parties in order to achieve the goals of everyone involved in the process. Whether the monies will be needed for refinancing or outright purchase, the best plan available will be applied specifically to your application. They will decide what type of loan will work best for you drawing on experience and benefits of finding successful funding needs for over a decade. A full detailed review of your situation can be completed in addition to resolution issues and monetary considerations. Request some additional information by contacting COHI today. Call 970-922-3277 or contact us for a decision. Often these are made the same day and can be addressed depending on client needs and schedule.
Read More...