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Cross Collateral Hard Money Loans


By David Schmidt - February 1, 2018

CoHI is frequently asked to fund a cross collateral loan.  This is a type of loan that has 1 Note attached to 2 or more Deeds of Trust.  This is a specialized loan that can satisfy loan requirements and free up the borrowers funds for improvements to the property or even make it possible for a loan to fund.

We have several clients that own commercial properties "free and clear."  These clients frequently use these properties to cross with another to reach the 65% - 70% LTV requirements to fund the hard money loan.  This strategy can also be utilized to purchase a property whereas if the purchase price of a new commercial property if $500,000 and the value of a free and clear property is $300,000 the total real estate value is $800,000 and the loan to value is 62.5% which fits a Cohi requirement to fund a hard money loan.

Please contact COHI at 970-922-3277 to discuss your private equity loan needs further.