Direct Lender for Residential Property Investors in Colorado

Salt Funding’s primary loan program is for the purchase and rehab of single family homes that will be flipped or rented. Loans typically do not exceed 80% of as-is-value or 90% of purchase price. We will also lend up to 100% of construction costs provided the total loan amount does not exceed 70% of the After Repair Value.

We offer cash out refinance loans (1st or 2nd position) on existing real property provided the funds are used for business purpose only.

Please note: we do NOT offer loans for ground-up construction or owner-occupied homes.

Property Geographic Area Details

Colorado only - non-rural areas

Loan Amounts

$50,000 to $5,000,000

Interest Rates

10% to 10%

Max Loan-To-Value

70%

Max Loan-To-Cost

80%

Origination Fees

2% to 2%

Loan Terms

0 months to 12 months

Lien Position

  • 1st
  • 2nd

Loan Purpose

  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Use Equity to Invest in Another Property
  • Value Add Project

Property Occupancy

  • Vacant
  • Tenant Occupied 100%

Property Types and Loan Types

Collateral Types

  • Residential Property
  • Commercial Property

Property Types

  • 2-4 Units Residential
  • Residential Land
  • Single Family Residence

Loan Types

  • Private Money
  • Hard Money
  • Residential Fix and Flip
  • Residential Rehab and Rent

Specialty Loan Types

  • 2nd Mortgage Equity Cash Out
  • Note Purchase
  • Reverse 1031 Exchange
  • Discounted Note Payoff
  • Foreclosure Bailout
  • Primary Residence Business Purpose Cash Out
  • Transactional Funding

Junior Liens

Junior Lien Loan Amounts

$50,000 to $500,000

Junior Lien Interest Rates

10% to 10%

Junior Lien Loan-to-Value

65%

Junior Lien Loan-to-Cost

70%

Junior Lien Origination Fees

3% to 3%

We Fund Junior Position Loans

Rarely

Junior Lien Types

  • Purchase
  • Refinance
  • Equity Cash Out
Loans must be for business purpose.

Land Loan

Description

We are conservative in our funding for land deals. Typical land loan will be for borrower who needs to close prior to obtaining a take out loan that will cover purchase price and construction costs.

Land Types Considered

  • Residential Land
  • Multifamily Land

Will Consider Land That is NOT Entitled

no

Existing Land Improvements Required

  • Street Access
  • Electricity
  • Gas
  • Water

Max LTV for Land

50%

Max LTC for Land Acquisition

60%

Purchase Loan

Borrower may bring equity from a multitude of sources provided they can provide evidence that they can conservatively pay for anticipated carrying and non-financed rehab costs.

Max Loan-To-Purchase Price

90%

Borrower Must Have Property Under Contract

no

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

no

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Primary Residence
  • Seller Financing
  • Gap Lender
  • Family

Rehab Value Add Loan

Borrower must submit and have approved a "scope of work" prior to loan closing. Construction funds are paid in arrears. In other words, borrower is expected to fund initial phase of rehab, provide proof of payment and appropriate lien waivers for same prior to receipt of initial rehab funding draw. Funds will only be released for work completed (in a workman like manner) which is included in approved scope of work (unless there is a lender approved change order). The construction component of a loan is likely the most complicated aspect of our (or any lender's) loan program - particularly for a borrower who is not experienced in this process. This process is designed in an effort to keep both the lender and the borrower as financially safe as possible. We feel it is important for a borrower to fully understand this aspect of the loan, and we take a great deal of effort to walk them through this process in detail. This "up-front" work helps borrowers manage the every aspect of the rehab.

Experience Required

no

Minimum Number of Value-Add Projects Completed by Borrower

0

Will Provide Funds for Renovation Costs

no

Max LTC for Renovation Costs

100%

Maximum After Repair Value

65.00%

Details and Requirements

Typical Closing Time (Days)

10

Fastest Closing Time (Days)

2

Works With

  • Brokers
  • Borrowers

Payment Structure

  • Interest Only

Payment Structure Details

Interest only monthly payments are required.

Pre Payment Penalty

no

Will lend to a foreign national

yes

Permanent resident aliens must provide a 1-551 Permanent Resident Card (Green Card) issued by the Department of Homeland Security U.S. Citizenship & Immigration Services. Permanent resident aliens must have either a social security number or an ITIN.

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

yes

Will Consider Collateralizing Multiple Properties in One Loan

yes

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered

  • Individual(s)
  • LLC
  • Limited Partnership
  • Trust
  • Corporation
  • Self-Directed IRA

Documentation Required

  • Credit Report
  • Loan Application

Personal Guaranty (Recourse) Required

Always

Credit Check Required

yes

Minimum Credit Score Required

600

Credit Check Description

Borrowers with a less than 600 credit score encouraged to bring in a partner to guarantee the loan. Loan-to-value may be decreased with lower credit scores, particularly where borrower does not have a demonstrable track record of purchased, rehabbed, and sold properties.

Appraisal Required for Residential Property

Sometimes

Appraisal Required for Commercial Property

Always

Broker Price Opinion (BPO) Accepted for Residential Property

Sometimes

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Fees

Funding Fee

2 point origination fee for senior position loans. 3 point origination fee for junior position loans.

Extension Fee

Typical loan extension is .0033 of principal balance per month payable at end of loan term.

Appraisal Fee

BPO fees will be refunded to borrower upon successful closing. Single family residential appraisal costs (typically only needed with a construction loan) will be refunded to borrower upon successful closing provided the total loan amount is $300,000 or more. For loans less than $300,000, $150.00 of appraisal costs will be refunded to borrower upon successful closing.

Renovation Construction Draw Fee

$125/site visit for construction draw

Minimum Origination Fee Amount

$1,000

Fees which are mandatory for all new borrower clients

  • Funding Fee

Fees which are charged upfront prior to loan closing

  • Funding Fee

Fees which are paid to a third party company

  • Appraisal Fee
  • Renovation or Construction Funds Draw Fee

Legal Disclaimer

Salt Funding, LLC will make every effort to update any changes to lending criteria represented herein.

Additional Details

BPO fees will be refunded to borrower upon successful closing. Single family residential appraisal costs (typically only needed with a construction loan) will be refunded to borrower upon successful closing provided the total loan amount is $300,000 or more. For loans less than $300,000, $150.00 of appraisal costs will be refunded to borrower upon successful closing.

COVID-19 UPDATE

We are lending, we do currently require the same “cash reserves” that we know many lenders are requring.  We have not changed our rates!!!

If you have a deal, please reach out for a 10 minute phone call to talk it through, we are committed to being creative and helping you capitalize during these challenging time!!  Please stay safe out there!! 

Salt Funding is a small, nimble, private lender based in Denver, Colorado.  The principals have been in the Colorado real estate and lending market for over 10 years. We pride ourselves on relationships, simple/personal application process, and transparent fee structure.  Because we have lower overhead than most other lenders we regularly get feedback that we are the most competitive lender in our market.

Company Size (Number of Employees)

2

Year Established

2017

Associations

  • American Association of Private Lenders

Office Locations

Denver, Colorado

Primary Capital Source

  • Own Funds

Alternative Capital Sources

  • Individual Investors
  • Private Equity Funds

Loan Structure for Majority of Loans

  • Own Balance Sheet

Alternative Loan Structures

  • Table Funding with Capital Partner

Percentage of company’s lending business focused on private mortgage

100%

Percentage of Loans Secured by Residential Property

100%

Percentage of Residential Property Loans Which are Fix and Flip

90%

Percentage of Residential Property Loans Which are Buy and Hold

10%

Total Number of Loans Funded to Date

46

Total Loan Volume Funded to Date

$10,700,000

2018 Number of Loans Funded

10

2018 Loan Volume Funded

$2,000,000

Tina Dorn

Owner

AAPL Certified Private Lender Associate

Tina enjoys spending time with her husband and two young boys traveling and adventuring in the Colorado outdoors. Tina has been investing in and lending in the Colorado market for since 2007. She has been originating business purpose loans full time since 2018 and is well known in the Colorado investment community.

Herb Dorn

Owner

Herb has been investing and lending in the Colorado real estate market since 2007. He is a retired firefighter after 20 years of service and is currently active on the local mountain rescue team where he works as a paramedic and a technical specialist. Herb enjoys spending time with his wife and two young boys traveling and exploring the Colorado outdoors.

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

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(temp use, storage, billboard, parking, etc.)

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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(temp use, storage, billboard, parking, etc.)

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how will the loan be paid off?

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