Cardinal Financial

About Cardinal Financial

Cardinal Financial is hard money lender headquartered in Denver, CO. They provide funding in Colorado. They provide commercial loans and fix and flip loans. Their lending parameters are versatile, including rates starting at 8% and loan amounts up to $700,000. They offer loans on all the following property types: single family units, multi-family units, apartment buildings, office units, retail units, storage buildings, mixed use spaces, and raw land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Storage, Mixed Use, Land

Areas Served: CO

Lending Guidelines for Cardinal Financial

Below are the general loan guidelines published on the Cardinal Financial website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Cardinal Financial.

Loan Example 1

Shannon finds a duplex in Denver, CO to flip and re-sell. Since she does not have enough cash to acquire the $330,000 house outright, she takes out a private money loan from Cardinal Financial. The terms of the note include a 80% loan-to-value (LTV), so she must contribute 20% of the price as cash to closing, making the principle note amount $264,000. The rate on the loan is 13% for a length of 12 months and the company requires a one point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be paid back after the sale of the property.

The borrower will need to contribute a total of $32,400 upon closing to pay the $66,000 down payment plus the $2,640 origination fee. After the loan is closed and Shannon takes the property, she will begin making payments each month of $2,860 to the lender ($264,000 principle x 13% / 12 months). At the end of the note, she sells the renovated house for $396,000. After subtracting the $34,320 in interest expenses ($2,860 multiplied by 12 months), the $2,640 origination fee, the $264,000 principle amount on the note, and the $66,000 she contributed to closing, she will make a total profit of $29,040 ($396,000 sales price minus $366,960 in costs). This amount would then be reduced by any building costs paid by the borrow.

Loan Example 2

Margret is a real estate investor in Denver, CO. She locates an older house for a remodeling project and takes out a private money loan from Cardinal Financial with the following terms:

a) A $250,000 sales price, b) a 50% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Once the renovation project is completed, if Margret sells the property for $362,500, the outcome would be the following:

$362,500 sales price
- $125,000 principle (50% LTV)
- $125,000 down payment (50% on 50% LTV)
- $6,250 origination fee (5% of the $125,000 principle)
- $18,750 interest payments (18 months x 10% interest)
-----------------------
= $87,500 total profit (does not include taxes or renovation costs)