With much fanfare, CO legislators met in a special session to focus on…
Telluride Hard money
Telluride is a quintessential Colorado mountain town bound by the San Juan Mountains located in SW Colorado. It is know as an outdoor mecca with skiing in the winter and mountain biking, hiking, and fly fishing in the summer. We recently closed a hard money loan in the town of Telluride, CO on a commercial mixed use property (commercial below with residential above). Above is a picture I took looking at main street with the mountains towering over the town.
Scenario: Borrower needed a million dollars to complete the purchase of another property. The borrowers were located in California and had under a week to close the loan.
- Telluride is a unique market that many lenders do not fully understand. It is a small market but very vibrant. The $/ft is very high compared to other markets
- Getting to telluride is no easy task, it is located 6.5 hours from Denver and air travel in the summer is limited
- Borrowers had 5 days to have a million dollars in good funds
- No current appraisal or environmental
- Borrowers out of state which can slow closings down with docs going back and forth
- Property currently vacant; the property was slated for redevelopment and not income producing at time of closing
- Borrowers did not have current financials
- One of the partners in Fairview (Glen Weinberg) lives in Evergreen, CO and was able to rearrange his schedule to drive down and inspect the property on short notice
- Fairview has closed 5 transactions in Telluride both on commercial and residential properties (condos, land, etc..) in both mountain village and the actual town of telluride so we were very familiar with the uniqueness of the market and the mixed use property
- No appraisals or environmentals needed on this property since we hold and fund all of our loans
- Since Fairview’s underwriting focuses on the value of the collateral, we were able to handle the lack of current financials and close the transactions
- With our market knowledge we were able to pull strings and get title updated within a couple days and docs prepared for mail away closing
- A five day closing was challenging. Most other lenders would need to wait for the appraisal, etc… Fairview was able to pull out all the stop and not only close, but fund in 5 days enabling the borrower to complete their other transaction.
What the Borrowers had to say:
- “Fairview was highly recommended to us by an associate and we couldn’t be more pleased. Fairview did everything they said they would, gave us a three year term with no prepayment, and enabled us to close our other transaction. Without Fairview and their speed we would have lost an important opportunity. Thanks again Glen and your team for your hard work.”
Learn more about Hard Money Lending throughout Colorado: coloradohardmoney.com
Written by: Glen Weinberg: COO Fairview Lending