A recent review of some of our hard money loans in Colorado brought up the topic of rescue capital. The loans we make are most often referred to as hard money loans or bridge loans. But every now and again, someone will come to us in need of financial rescue.
Although ‘rescue capital’ isn’t an official term for hard money in Colorado, Utah, or Idaho, it is a colloquial term well known in our industry. It refers to funding a borrower’s immediate needs after their original lender backed out. In nearly every case, the original lender backed out at the very last minute.
This actually happens far more often than you might think. Hard money borrowers, and real estate investors in particular, put a ton of time and effort into arranging financing. They get all their ducks in a row and then, for whatever reason, the lender backs out. Suddenly there is a need for emergency funding to avoid scuttling the deal.
From Friday to Monday
Our favorite example of rescue capital comes by way of a client who contacted us on a Friday morning. He was all set to close on a commercial property that following Monday, but then his bank backed out. If he couldn’t close on Monday, the deal would be lost.
It was no problem for the Actium Partners team. We sent someone out to look at the property later that day. By Friday afternoon, we were drawing up documents in the office. The documentation and funding were wired to the title company first thing Monday. The deal was saved, and our client then had more time to arrange traditional financing.
Funding When You Can’t Mess Around
Whether you appreciate the term ‘rescue capital’ or not, the point here is that hard money loans are the go-to choice for funding when you don’t have the time to mess around. When you need cash fast, hard money is the way to go. There is no simpler way to put it.
As for why banks back out, there could be any number of reasons for each particular case. There is no point in us speculating. The fact is that they do back out from time to time. And when that happens, borrowers can either walk away in frustration or look for another option. We recommend the latter, especially if you are looking to borrow in Colorado, Utah, or Idaho.
Plenty of Opportunities in Colorado
We are pretty excited about offering hard money and bridge loans in Colorado. Though we are based in Salt Lake City and still call Utah home, there are plenty of opportunities in the Centennial State. Wherever there are opportunities you will find borrowers who need fast funding without a lot of hassles. They are the ideal candidates for Colorado hard money loans.
Hard money’s biggest advantage is speed. Loans can typically be approved and funded within days, not weeks or months. The application process is simple. The approval process is straightforward, transparent, and no-nonsense.
Hard money is also short-term. If you are not looking to have your capital tied up for years on end, a short-term hard money loan is ideal. You get in and out quickly, as do we. It is a tidy arrangement that benefits everyone involved.
The loans we offer can be referred to as hard money, bridge loans, or even rescue capital under certain circumstances. Regardless of what you call it, it could be the best source of funding you’ve ever utilized. Interested in learning more about our hard money loans in Colorado? Reach out and let’s talk.
