HARD MONEY LOAN PARAMETERS
LOCATION
Silver Jack Capital is located in Ouray County, Colorado on the West Slope. We do loans throughout the entire State of Colorado. This is possible due to a network of Realtors and mortgage professionals that refer loans to us.
PROPERTY
We can do hard money loans in Colorado secured by all types of real property with the exception of owner occupied single family residences.
LOAN TO VALUE RATIO (LTV)
The LTV will vary on a case by case basis. Among the considerations that will determine the maximum LTV are the type of property, the location of the property, and the strength of the borrower. The highest LTV will be 65% and in a few situations, 70%. This will be on improved property with an established income stream from rentals or on a fix and flip property with good rental potential. Loans on land and in particular, raw land will have a much lower LTV due to lack of income stream and a more difficult exit strategy.
TERM
The loan term for most of our loans will be 1-2 years. That is fairly typical for hard money loans in Colorado and in general as most borrowers regard a hard money loan as a short term situation. It has always been the policy of Silver Jack Capital to extend loans that come due if the payments have been made in a timely manner throughout the term of the loan.
INTEREST RATE
Hard money loan rates typically range from 10% to as high as 18%. Silver Jack Capital will always be in the 10-11% range. As with the LTV, factors that will affect the interest rate are the location and type of property and the strength of the borrower.
ORIGINATION COSTS
The origination costs of a hard money loan will consist of an appraisal fee or a BPO fee, the cost of title insurance, closing costs, and a recording fee. In addition, Silver Jack Capital is paid a commission for providing the funds. That commission will be from 3-5 points.