Colorado
Hard Money Loans

Why Choose First Capital Trust Deeds for Hard Money Financing?

At First Capital Trust Deeds, we’re a dedicated mortgage brokerage specializing in real estate investment financing. Our clientele includes real estate investors and trust deed investors, and we’re committed to catering to their unique financial requirements. Over the years, we’ve cultivated strong, long-lasting relationships with both borrowers and lenders, gaining valuable insights into their investment goals and tailoring our services to meet their specific needs.

We understand that real estate investors often encounter challenges when searching for short-term hard money financing, especially when confronted with complex loan scenarios involving multiple properties, probate or bankruptcies. At FCTD, we take pride in our ability to navigate these intricate situations and secure the necessary financing for our clients.

Since our establishment in 2013, FCTD has successfully originated over 2,500 loans, totaling more than $2.5 billion in funding. In 2022 alone, we closed more than 500 loans across 23 states. Our achievements are a testament to our extensive knowledge, experience and professional network, which enable us to consistently deliver results for both borrower and lender clients.

As a real estate investor seeking short-term hard money financing, you can rely on First Capital Trust Deeds to provide tailored solutions and expert guidance to help you achieve your investment objectives.

What are the Costs of a Hard Money Loan?

Colorado hard money loans typically incur origination fees ranging from 2-4 points, with interest rates between 8.99-12.00%. Loan terms can vary from three months to 15 years. Additional fees can begin at $1,095 for loan documents up to $3,500 for an attorney to review paperwork for individual trust deed investors. Unlike conventional mortgages, hard money loans don’t have fixed prices but are pinned to each loan's specific circumstances.

Loan Type:
FCTD offers eight distinct hard money loan types and numerous bank financing programs, with pricing structures based on the loan category.
Property Type:
Bridge loans for single-family homes generally have lower closing costs than construction loans to build a number of speculative homes.
Project Scope:
A cosmetic fix-and-flip project with a $30,000 rehab budget and a two to three-month timeline is less complex than an 18-property cross-collateralized blanket loan involving a mix of commercial and residential rental properties.
Funding Source:
As mortgage brokers, FCTD collaborates with five different private money loan funding sources – individuals, real estate offices, family offices, conduit lenders and mortgage funds. Each source has preferences for property types and financing scenarios, which in turn affect their pricing structures based on risk levels.
Availability of Capital:
Projects with higher complexity and multiple moving parts often deter lenders, resulting in increased funding costs.
Borrower Experience Level:
First-time house-flippers may be subject to larger down payments, higher closing costs and costlier interest rates than experienced investors who have flipped 20-30 properties annually over the past decade.
Borrower Financial Strength:
Borrowers with a strong financial background typically secure funds at a lower cost than those with a history of defaulting on debt.

FCTD’s Experience with Different Financing Scenarios

Over the years, FCTD has worked with real estate investors on numerous loan scenarios – some complicated and some relatively straightforward. Below are some of the most common hard money loan scenarios that FCTD has worked on: