Forrest Financial Group

About Forrest Financial Group

Forrest Financial Group is a Denver, CO based hard money lender. They offer loans in Colorado. They provide lending solutions for a variety of needs and situations, including short term fix and flip loans, commercial loans, and long term rental property loans. Their lending guidelines are flexible, including terms between 3 months and 24 months, rates ranging between 9% and 12%, and loan amounts ranging from $100,000 to $2,000,000 with a maximum LTV of 70%. They make loans on most types of properties, including single family homes, multi-family units, apartment buildings, office units, retail storefronts, storage facilities, mixed use, and undeveloped land.

Loan Types Offered: Investment Property Loans, 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 Forrest Financial Group

Below are the general loan guidelines published on the Forrest Financial Group 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 Forrest Financial Group.

Loan Example 1

Penny finds a condo in Denver, CO to renovate and resell. Since she doesn't have enough cash on-hand to purchase the $360,000 house outright, she decides to take out a fix and flip loan from Forrest Financial Group. The lender agrees to make a loan with a 60% loan to value (LTV) so they are willing to extend $216,000 on the property. The loan also includes these features: 1) a 6 month term, 2) a 12% interest only note, and 3) a five point origination charge.

Therefore, Penny will need to make a $144,000 down payment plus pay a $10,800 origination fee. After the loan is executed and Penny takes the project, she will begin making monthly payments of $2,160 to Forrest Financial Group ($216,000 principle x 12% / 12 months). If Penny sells the remodeled project for $522,000 at the end of the 6 month term, her gross profit (not accounting for renovation costs) would be $138,240. This is calculated by taking the purchase price ($522,000) and subtracting the original note amount ($216,000), the origination cost ($10,800), the money she contributed to closing ($144,000), and the total interest payments ($12,960).

Loan Example 2

James takes a private money loan from Forrest Financial Group so he can rehab a house to re-sell in Denver, CO. The deal has the following terms:

$330,000 purchase price
75% loan-to-value (LTV)
6 month term
8% rate of interest
5% origination fee

Once the renovation project is complete, if James sells the property for $445,500, the final numbers would be the following:

$445,500 sales price
- $247,500 principle (75% LTV)
- $82,500 down payment (25% on 75% LTV)
- $12,375 origination points (5% of the $247,500 principle amount)
- $9,900 total interest paid (6 months x 8% interest)
-----------------------
= $93,225 total profit (doesn't include taxes or rehab costs)