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Asset Classes and Varying Degrees of Risk


By David Schmidt - May 9, 2018

There is no shortage of debt in the present market for income producing assets.  Commercial real estate remains a solid investment.  Finding commercial income producing real estate with equity and a decent CAP rate is the primary challenge in this market.  Sellers understand the market and even vacant properties are being sold at premium.  Sellers often will price a property including the value add they expect the buyer to bring to the table.  This type of market although seemingly strong presents a large degree of risk to the hard money lender.  

Multifamily housing is the most valuable asset class in this category.  CoHI lends on this asset class more aggressively than most because we see its value and long term potential growth.  There is also a strong demand for this asset class in Denver and the absorption rate of new inventory is rapid and does not oversaturate the market.  There is an ever expanding class of consumers for this asset class from millennials to retirees.  

CoHI is seeking to lend on multifamily properties in Denver and throughout Colorado.  Please contact David Schmidt 970-922-3277 to discuss further.