Choose from 2 Hard Money Lenders in Aurora, CO
Aurora, CO hard money lenders operate and do business in the counties of Arapahoe, Adams, and Douglas. The city of Aurora itself has a population of about 330,000 people. Factoring in a land area of roughly 145 square miles, you get a population density of roughly 2,000 people per square mile.
Aurora, CO hard money lenders do their home work. They know real estate markets in the state very well. And so before they're even going to present a borrower with an offer of Aurora hard money, they're going to require the borrower to go through a bunch processes that surround the real estate that's being put up as collateral and security to the prospective new debt. These hard money lenders in Aurora do this in order to protect themselves. They're dealing with a borrower whose credit and general financial situation is usually not ideal.
So they're not really dismissing or overlooking the borrower's credit, per se, they're just rationalizing and saying: we have funds; we want to lend these out, we want to help you, but we need to be practical here. "I need an out... just in case." And so what will happen is that these lenders will only issue roughly 50% of the property's value. This is what's referred to as the loan to value (of the property) ratio. This ratio is low with these debt products that private hard money lenders put out, because of the high chance and probability that the borrower will default on the debt.