COST Fund

About COST Fund

COST Fund is a Denver, CO based private money lender. They offer funding throughout Colorado. They offer lending solutions for a variety of scenarios, including hard money bridge loans, investment property loans, and fix and flip hard money loans. Their lending guidelines are versatile, including rates ranging between 14% and 16%, loans with a maximum LTV of 85%, and terms up to 12 months. They primarily make loans on single family residences and multi family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: CO

Lending Guidelines for COST Fund

Below are the general loan guidelines published on the COST Fund 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 COST Fund.

Loan Example 1

Tracy takes a hard money loan from COST Fund in order to renovate a townhouse to resale in Denver, CO. The price of the house is $200,000. The borrower will be required to bring 15% of the purchase price in cash to closing based on a 85% loan to value stipulated by the lending company. This makes the principle note from COST Fund $170,000. The parameters of the note also stipulate a three percent origination fee which will be paid at closing and a 6 month, interest only note with a 13% rate of interest.

On top of the $5,100 origination fee, Tracy will also have to fund $30,000 of the purchase with her own cash, or 15% of the purchase price. she will then pay $1,842 per month to COST Fund. At the expiration of the note, she sells the rehabed house for $290,000. After deducting the $11,050 in total interest payments ($1,842 multiplied times 6 months), the $5,100 origination fee, the $170,000 principle amount on the note, and the $30,000 she contributed to closing, she will earn a total profit of $73,850 ($290,000 sales price minus $216,150 in costs). This profit would then be reduced by any rehab costs paid by the borrow.

Loan Example 2

Roy is a real estate investor in Denver, CO. He finds a run-down house for a renovation project and takes a fix and flip loan from COST Fund with the following paramters:

a) A $360,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 5% origination fee.

If Roy succeeds in his goal of a $522,000 sales price, the final numbers of the deal will be as follows:

$522,000 sales price
- $180,000 loan principle (50% LTV)
- $180,000 cash paid at closing (50% on 50% LTV)
- $9,000 origination fee (5% of the $180,000 principle amount)
- $21,600 total interest paid (18 months x 8% interest)
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= $131,400 total profit (does not include taxes or renovation costs)

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