5 Best Hard Money Lenders in Colorado


Hard money lenders in Colorado are an excellent option for hard-to-finance properties.

Key Terms

  • Hard money loans are a short-term financing option ideal for those looking to buy an investment property and fix and flip homes.
  • Hard money lenders in Colorado offer a variety of terms and conditions, and eligibility on these loans tends to differ from one to the next.
  • The after repair value of the home is often considered in the initial estimate, providing better access to the funds needed.

From its incredible mountains and natural areas to its vibrant cities and modern lifestyle, Colorado has a wide range of amenities to offer those living here. It is a large state with a population of 5.7 million people. It’s more remote than most expect, but there are areas that are quite upscale and luxurious. For many, skiing in the winter months or hiking through the Southern Rocky Mountains in the summer makes this area attractive. For others, it is the strong economy, one that is based on agriculture, tourism, mining, and government and defense. It’s also a growing manufacturing hub for the region. With a high quality of life expected and a moderate cost of living, Colorado has much going for it for many people who call it home.

One of the keys to this area is the high overall cost of homes on the real estate market. A big part of that is due to a limited inventory in some of the bigger cities like Denver, Fort Collins, Colorado Springs, and Boulder. The area also has a lot of demand for housing in these larger cities as more people than ever are making the move to an area that offers a better quality of life. The average sale price of a home in Colorado in August of 2022 was $415,000, and the median sale price was over $600,000. Yet, there are many smaller communities here with far more affordability overall, providing buyers with ample ability to find the affordability they desire.

Also important to note is that many people rent here. That is due, in part, to the state’s high home prices but also because many people here use the area for part of the year. The U.S. Census Bureau states that about 66.3% of people own their homes in Colorado and 33.7% rent them. For private real estate investors, this is a good thing because it means there is more demand for properties. Also, there is not a lot of available rental property here. Just 4% of rentals are vacant at this time. That could create an ideal situation for more demand for residential investment properties.

Show Me Lenders

How hard money loans work

For those who want to buy into the Colorado housing market but may not have the down payment needed or a high credit score, hard money loans may help. A hard money loan in Colorado is much like a traditional mortgage, but unlike bank-based and commercial loans, these loans are provided by private money lenders like investors and individuals. That means the hard money lenders in Colorado set different terms and have various eligibility requirements for these property loans, and that often means less overall government oversight.

There are a range of benefits to hard money loans in Colorado, and that comes down to the way these loans work. These short term loans are secured by the value of the home. That means that if a borrower does not follow through and make payment each month on the loan as agreed, the real estate lender will force the sale of the home through the foreclosure process, which, in turn, means that the lender can get back some of its investment. Because of this benefit to the lender, they can remain competitive in the interest rates charged.

Still, it is important for Colorado investors to realize that hard money lenders do have higher interest rates than what is typical in a bank. One of the key reasons for this is that the lender is taking on more risk through these loans, and more risk means higher costs. In addition to that, most of these loans are for a short term, just 1 to 5 years. They are not meant to be long-term loans that are maintained for decades. Overall the interest charges are competitive for most borrowers as a result of these factors.

Get Quotes for Your Loan

5 Top Colorado hard money lenders

If you’re ready to learn more about the best hard money lenders lenders in Colorado, here are the top options we’ve found through our research.

1. Stratton Equities

Stratton Equities is a nationwide direct hard money lender for real estate investors. Founded by Michael Mikhail in 2017, Stratton Equities has over five years of experience in the private lending market.

We reached out to Stratton Equities to get more information about their hard money lending program and here are some highlights:

  • Loan amounts from $100,000 up to $5 million
  • Investment properties only
  • Single-Family, Condos, Townhomes, Multi-Family, Commercial, Mixed-Use, Office, Retail, Industrial and Warehouse are all ok
  • Up to a 75% LTV
  • Rates start at 7.25%
  • Interest only payments
  • Loan terms are 9-24 months
  • Foreign nationals are eligible
  • No prepayment penalty option is available

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

2. HouseMax Funding

HouseMax Funding is based out of Austin, Texas but has a national footprint when it comes to real estate industry lending. Started by Jeff Fetcher and Alex Morris, HouseMax provides asset-based loan financing to investors for real estate transactions.

We reached out to HouseMax to learn more about their hard money lending program and here is what we found:

  • Minimum loan amount is $75,000
  • Lends up to 75% of the after-repair value (APV)
  • 1-3 points origination charge
  • 3 months reserves required
  • Direct lender that approves loans internally and funds using their own private capital.
  • Lends in urban and suburban communities in all 50 states.
  • Goal is to close loans in 10 days or less.
  • Specializes in fix & flip loans, construction and rental loans
  • Multi-family and commercial properties are ok

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

3. Easy Street Capital

East Street Capital is based in Austin, Texas but lends nationwide except in North and South Dakota. Founded by Stephen Hagerman in 2016, Easy Street Capital has over six years of experience in the real estate investing world.

We reached out to Easy Street Capital to learn more about their hard money loans and this is what we found:

  • Interest rates range from 6.9% – 10.9%
  • Points range from 2-3
  • There is a $1495 document fee
  • No minimum credit score required
  • Down payments of at least 10% required
  • Renovation financing ok
  • Fix and Flip loans do not typically have prepayment penalties

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

4. Fund That Flip

Fund That Flip is a hard money lender based in New York that focuses on short term bridge loans for real estate investors looking to flip properties. Founded by Matt Rodak in 2014, Fund That Flip lends in most states.

We contacted Fund That Flip to learn more about their bridge loan program and here is what we found:

  • Up to 80% LTC and 70% ARV ratios for your project
  • Rates start at 9.99%
  • Direct lender with discretionary capital
  • Construction projects ok
  • 10% down payment required

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

5. LendSimpli

LendSimpli is a hard money lender based in Tampa, Florida. They can lend nationally in most states but may not be able to lend if the property is in a rural area. Founded by Brenden Crampton and Matthew Davies in 2018, they have nearly four years of experience in the private lending real estate investment market.

We reached out to LendSimpli to get more details about their bridge loan product and this is what we found:

  • Loan amounts up to $5 million for 1-4 unit properties
  • Loan amounts up to $20 million for 5+ unit properties
  • Single family (1-4 units)
  • Multifamily (5-20 units)
  • No owner-occupied residential properties
  • Loan terms 12-24 months
  • Interest-only payments with rates starting at 8.50%
  • Max LTC is 90% of project costs
  • Minimum credit score is 660
  • Prefer that you have at least two transactions in the past three years

When you’re ready to connect with a loan officer, use our form to quickly match with eligible loan programs based on your specific circumstances.

How are Colorado hard money loans different from other loans?

A Colorado hard money loan could be an excellent option for many people, and with good reason. These loans tend to offer some core differences. First, the loans are often available based on the after repair value of the home. Unlike a traditional mortgage that is based on the current condition of the home and its existing value, private money lending is ideal because borrowers can obtain more money to cover those repairs that they may have. This is important because many of these loans are used by those purchasing homes for a real estate project.

A hard money lender in Colorado may also provide more flexibility in terms and conditions. For example, they may not require as much focus on the home inspection because, often, these properties are being renovated heavily before they will be sold again or used as an investment property. That creates a bit more security in the investment for the lender.

Hard money loans differ in terms of interest rates, often having a higher loan rate than other real estate loans, and they offer a faster closing timeframe during the loan process, too. Most often, these loans can close within about 30 days, and sometimes less, whereas most traditional bank loans require at least 60 days, if not longer, to close. This helps the buyer who is trying to get a good quality property or a deal to do so with confidence. There are still eligibility requirements with these loans, but they tend to be a bit easier to handle than traditional bank loans.

If you’re looking to explore hard money in other states, check out our national overview of hard money lenders as a starting point in your search.

Find a Hard Money Loan Specialist

Joshua Holt

Joshua Holt is a licensed mortgage loan originator (NMLS #2306824) and founder of Biglaw Investor. His mortgage expertise lies in the areas of professional mortgage loans, particularly for lawyers, doctors and other high-income professionals. Prior to Biglaw Investor, Josh practiced private equity mergers & acquisition law for one of the largest law firms in the country.

Save more money than your friends

One email each week covers personal finance, financial independence, investing and other stuff for lawyers that makes you better.