Question 1

Do you lend across all of Colorado?

Accepted Answer

Yes. We fund investors along the whole Front Range and beyond, and the state layer is the same everywhere: public trustee foreclosure, a one cent per $100 documentary fee, and a flat $43 recording charge per document. What changes is the market and the hazard. Denver, Colorado Springs, and Fort Collins are three different price points and three different rent stories, and hail loads insurance differently county by county. For market conditions go to Denver, Colorado Springs, or Fort Collins. Every loan is business-purpose only, on investment property, and terms are subject to underwriting. See loan programs or talk to us.

Question 2

How does foreclosure actually work in Colorado?

Accepted Answer

Through a county public trustee, which no other state does. The holder files a notice of election and demand with the public trustee of the county where the property sits, along with the evidence of debt and the deed of trust, and the public trustee records it. CRS 38-38-108(1)(a) then sets the sale no less than 110 and no more than 125 calendar days after the notice of election and demand records for non-agricultural property. Agricultural property runs 215 to 230 days. A combined notice goes out within 20 calendar days of recording, and again 45 to 60 days before the first scheduled sale date. Running alongside that track is a mandatory court order authorizing sale under CRS 38-38-105, obtained through a Rule 120 hearing. It is a limited proceeding, not a trial, and it fits inside the same window. Talk to Colorado counsel about your own file.

Question 3

Is there a redemption period after a Colorado foreclosure sale?

Accepted Answer

Not for the owner. CRS 38-38-302 gives redemption rights to junior lienors only: a junior lienholder files a notice of intent to redeem within 8 business days after the sale, the first redemption window opens no sooner than 15 and no later than 19 business days after the sale, and each lienholder behind that one gets 5 more business days. There is no owner redemption, so title vests quickly by national standards. The right that does bite before the sale is cure: under CRS 38-38-104 the owner, anyone liable on the debt, a guarantor, or a qualifying junior lienor can file a notice of intent to cure no later than 15 calendar days before the sale and must pay by 12 noon on the day before the sale. That right exists on business-purpose loans too, so underwrite for it if you are buying paper or bidding on the courthouse steps.

Question 4

What does it cost to convey and record property in Colorado?

Accepted Answer

Very little, and that is unusual. CRS 39-13-102 sets a documentary fee of one cent for each $100 of consideration, or major fraction of it, payable when a deed is recorded, with no fee at all when consideration is $500 or less. On a $500,000 purchase that is $50 (500,000 divided by 100 = 5,000, times $0.01 = $50). There is no state real estate transfer tax beyond that fee, and TABOR bars new state or local transfer taxes, though a handful of home-rule mountain towns keep pre-1992 grandfathered ones. None sit in the Denver or Colorado Springs metros. Recording went flat on July 1, 2025 under HB24-1269: $43 per recorded document regardless of page count, being $40 plus a $3 technology surcharge. A 30-page deed of trust costs the same as a one-page deed. Confirm the current schedule with the county clerk and recorder before you budget.

Question 5

Does Colorado cap the rate on a business-purpose loan?

Accepted Answer

Yes, and Colorado is unusual here, so read this one carefully. CRS 5-12-103 lets parties contract in writing for any rate not exceeding 45% per annum, with 8% as the default where there is no agreement. On top of that, CRS 18-15-104 makes it a class 6 felony to knowingly charge, take, or receive a loan finance charge exceeding an annual percentage rate of 45%, and that criminal ceiling has no business-purpose carve-out. Normal private lending pricing sits far below it. Where it becomes worth checking is default-rate-plus-fees math on a very short loan, since points, fees, and default interest can count toward a loan finance charge. Whether particular fee types count, and how courts have read the statute on commercial loans, is a question for your own counsel. Consumer rate tiers under the Colorado UCCC do not reach business-purpose loans, because CRS 5-1-301(15)(b) excludes a loan made for a business, investment, or commercial purpose.

Question 6

Do you close through an attorney or a title company in Colorado?

Accepted Answer

A title company with an escrow desk. The title company holds earnest money, clears and pays off liens, disburses, and records. There is no attorney-closing requirement to work around, which is part of why a clean Colorado file moves fast. The piece worth knowing is on the premium: Colorado title insurance rates are filed with the Division of Insurance by each underwriter rather than promulgated by the state, so premiums vary by company and the filed rate manuals are public. Unlike a promulgated-rate state, shopping title here can actually move the number. Get more than one quote, and weigh it against whether the company can close you on your date.

Question 7

How is Colorado property tax calculated on an investment property?

Accepted Answer

Actual value times an assessment rate times the mill levy, with a wrinkle: since tax year 2025 residential property carries two assessment rates, one applied to school district mills and one to everything else. For tax year 2025 that was 7.05% for schools and 6.25% for local governments, with no value reduction. For tax year 2026 it is 7.05% for schools and 6.8% for local governments, and the local-government side first subtracts 10% of actual value capped at $70,000. Non-residential property, meaning commercial, vacant land, and business personal property, was assessed at 27% for 2025, with most categories dropping to 25% to 26% for 2026. Rates can step down if statewide value growth clears a trigger, so check the November certification before you lock a 2026 number. There is no homestead-style cap an investor loses here. Even at investor rates, Colorado residential property tax is low by national standards.

Question 8

When can I protest a Colorado valuation, and how often does it reset?

Accepted Answer

Real property is revalued every odd-numbered year, and notices of valuation are mailed by May 1. Under CRS 39-5-122(2) a real property protest must be postmarked, delivered, or given in person by June 8, and the assessor answers by the last regular working day in June, or by August 15 in counties that have elected the alternate procedure. Miss June 8 and you carry the number for the cycle. If you hold across several counties, the deadline is the same statewide but the assessors are not, so calendar it once and work every parcel. The next steps after the assessor are the county board of equalization and beyond, and those deadlines are worth confirming with your property tax counsel rather than assuming.

Question 9

What do Colorado state taxes do to my returns?

Accepted Answer

Colorado runs a flat individual income tax of 4.4% of federal taxable income, with temporary TABOR-triggered cuts in some years, so the number can wobble a few hundredths year to year. The corporate rate is the same flat 4.4%. There is no franchise tax, no gross receipts tax, and no entity-level net worth tax on LLCs, so a pass-through owner pays the flat individual rate, and a SALT-parity pass-through entity election exists. That is a simpler entity picture than most states put in front of an out-of-state investor, but it is still not tax advice. Price your own position with a CPA who files Colorado returns.

Question 10

Why is insurance the line item that surprises out-of-state buyers here?

Accepted Answer

Because Colorado premiums have risen faster than anywhere else, and the driver is hail, not wildfire. Cumulative premium growth since 2020 runs about 100.8%, described as the largest increase of any state. Federal Insurance Office data put the average annual premium near $4,072 for $300,000 of coverage, sixth-costliest in the country, up 58% from 2018 to 2023. A Division of Insurance analysis published in February 2026 attributes 26% to 54% of homeowners premium to hail depending on county, roughly half of premium along the Front Range and the Eastern Plains, against 0.9% to 24.6% for wildfire and about 1% in Denver. The May 8, 2017 Denver metro hailstorm ran about $3.3 billion in 2025-adjusted damages and a May 2024 storm topped $2 billion. Budget for percentage-based hail deductibles, expect roof age to drive the quote, and quote the specific address before you sign.

Question 11

Do you need a mortgage license to make these loans in Colorado?

Accepted Answer

Not on a true business-purpose loan, and the statute is what decides it. CRS 12-10-702(21) defines a residential mortgage loan as one primarily for personal, family, or household use secured by a dwelling of four or fewer units, and CRS 12-10-702(14)(a) defines a mortgage loan originator by reference to that same term. A loan to an investor or an entity for a business purpose is not a residential mortgage loan even when the collateral is a 1-4 unit house, so it sits outside the originator licensing definition. Purpose is a facts-and-circumstances question, which is why our files are documented as business-purpose from the first page. We do not lend on owner-occupied property in Colorado.

Question 12

What credit score do I need to borrow in Colorado?

Accepted Answer

It depends entirely on the program. On our asset-based loans, meaning fix and flip, bridge, and ground up construction, there is no minimum score. We run credit, but it carries far less weight than it would at a bank, and weaker credit is usually answered with lower leverage rather than a decline. DSCR and bank statement loans start at 640, conventional investment starts at 580, and transactional funding runs with no credit check at all. There is no hard credit pull to open a Colorado file. Subject to underwriting.

Question 13

What is the smallest loan you will write in Colorado?

Accepted Answer

$100,000 on most residential programs. Fix and flip, DSCR, and bank statement loans all start there. Portfolio loans start at $500,000 across five or more properties, and SBA starts at $350,000. At the top, fix and flip and construction run to $5,000,000, DSCR and bank statement to $3,000,000, and commercial bridge to $10,000,000. Colorado price points differ a lot by market, so check the floor against the deal before you tie up a contract. Subject to underwriting.

Question 14

How much do I have to put down on a Colorado deal?

Accepted Answer

Anywhere from nothing to 30%, depending on the program. Fix and flip funds up to 90% of purchase plus up to 100% of rehab, so on a $500,000 Colorado purchase that is $450,000 from us and $50,000 from you (500,000 x 90% = 450,000). DSCR and conventional investment run up to 80% LTV, commercial bridge up to 75%, construction up to 70% of value and 85% of cost, and SBA finances up to 90%. Transactional funding covers up to 100% of the A-to-B purchase. Subject to underwriting.

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