Category: Uncategorized

September 9, 2019

DENVER, Colorado – Indicate Capital and Colorado Short Term Funding, one of Denver’s leading private lenders for residential and commercial real estate, recently named Max Miller as Loan Originator in the Denver office. 

Max spent four years at Merchants Mortgage & Trust Corporation where he worked as a Loan Originator and established himself as a rising star in the investment real estate industry.  Max is passionate about helping real estate investors achieve their goals and providing an enjoyable experience. 

“We are extremely excited to add high-caliber talent like Max to our growing company.  His proven ability to develop relationships and provide expertise in the residential and commercial fix and flip sector will be a great addition to our team,” said Tyler Ideker, Principal at Indicate Capital and Colorado Short Term Funding.

About Indicate Capital & Colorado Short Term Funding

Indicate Capital and Colorado Short Term Funding are Denver’s leading private money lenders for residential and commercial real estate.   A hard money lender serving the Colorado market, they exist to fund new opportunities and help grow businesses and shape local communities.


One of the best uses of hard money loan programs like Indicate Capital, is for investing in fix and flip real estate properties.  But remember, lots goes into the process of buying, rehabbing a home, and flipping it back onto the market.  A fix and flip project focuses on rapidly expanding the value of a property through very targeted remodeling.  You have to figure out the budget to complete the home, who will do the work, how you will secure the home, and what your backup plan is if it falls through.  It is possible to make a great deal of money with fix and flip investments in Colorado but there are precautions to take into account.  By setting an accurate budget for your remodeling projects and completing as quickly as possible, it is possible to add significant value to the structure.  The longer the project takes, the lower the profit will be.  Below are tips Indicate Capital suggest fix and flip investors take into consideration in order to get the most out of your real estate investment.

Calculate ARV

ARV – After Repair Value, helps determine if a property is a worthwhile investment.  ARV represents the total home value after all renovations are done. The difference between your “as-is” property and the ARV is your potential revenue. To measure ARV, look at homes similar in age, size, square footage, room count and location, ideally within a mile of the target property.

Plan for Potential Risk

There are always risks associated with a real estate investment and not all flips are going to work out perfectly.  You may find a perfect home, have the budget planned out for the renovations, but what about the hidden problems that aren’t apparent till after you begin demolition?  By planning ahead and having a reserve fund for each flip, you can give yourself a safety cushion to fall back onto in the event a fix and flip becomes a flop.

Budget Properly

Real estate flipping expenses can grow unexpectedly if you are not careful. To estimate repair costs, get bids from multiple contractors. If you are planning to perform some renovations yourself, invest time while shopping for your materials. Indicate Capital suggests adding 10 percent on top of your best budget estimates to account for the unexpected.  Also, don’t forget about closing and holding expenses.   Closing costs can be quite challenging to estimate in advance. It is not unusual to spend 2 percent to 5 percent of a house’s value for closing. Costs can be reduced by negotiating concessions or managed through favorable financing. To budget accurately, get several estimates for total closing costs. Don’t forget optional but desirable extras such as a home inspection.

Work with Reputable People or Consider a Partnership

It is important to find good people to work with on your real estate projects.  Find someone who understands the industry, is experienced, and can be trusted to complete the task they are assigned.  Partnering with another investor substantially reduces your risk.  Although this will inevitably reduce profit, it can be worthwhile. In most markets where fix and flip is taking place like Denver, there is a thriving community of real estate investors. Working together can mean success for all instead of costly competition.  In the end, if you are working with someone be sure to work together as a team for the same end goal.

If you have questions or want to talk before purchasing a fix and flip, let us know.  Contact Indicate Capital.

We frequently get asked the question about where the demand for loans comes from and if there are really enough people flipping homes to keep Indicate Capital & COST Fund’s portfolio lent out.  The article published in The Real Deal in early April puts a little more color around the demand that home flippers have created.  According to this article, house flips accounted for 10.6% of all home sales in the US in the 4th quarter of 2018.  The number of flips have not been this high since before the great recession when they hit 11.3% in 2006. 

While the correlation of the high number of current flips compared to just before the great recession may be unnerving, the median profit for flips in 2018 is more than twice what it was 12 years ago.  This means the market is more stable, flippers and lenders are not taking as much risk, and there are still many opportunities to make money on rehabbing a house to add value.

One other thing that was interesting from this article is that more than 40% of all flippers today are corporate sellers.  This tends to mean more flippers have experience in the market and have the ability to take a loss on one property while making profits on others.  We have certainly seen this in our portfolio as the majority of our borrowers are doing more than one flip at a time.  And our biggest borrowers tend to be like traditional home builders, but instead of having a single subdivision to develop, they are building houses in different areas at the same time.

We believe that the housing market, especially in Colorado, is still in good shape for the long run.  We know that appreciation in the market is probably slowing down and we are ready for that.  But we also believe that flipping houses is going to be an important sector within the overall housing market.  While there are plenty of houses within the urban market that are still prime for flips, we also believe we are going to see more and more flips in the suburbs once the neighborhoods built in the 70’s and 80’s start to turn over.

As always, we are still very diligent in our underwriting for each loan we issue and we do not assume the market is going to be this good forever.  We are going to continue to underwrite each house we lend on in a manner that protects investor principal and will help the portfolio succeed no matter if the market is good or bad. 

Many people consider developing a real estate portfolio as a full or part-time source of income. Real estate in Colorado has attracted investors from all over the country. Real estate investment options are waiting all over this great state.

No matter which city you choose to focus on, there are some key considerations to keep in mind. When you follow these five points, you’ll find it that much easier to achieve your Colorado real estate income goals.

Cash Flow Needs to be Aligned With Your Expenses
Upfront and ongoing expenses will be a major factor for you each time you add a new element to your real estate investment strategy. It may take time (weeks or even months) to nurture a property to the point where it efficiently adds to your bottom line. So, make sure your current cash flow meets the new requirements.

Very Important to Have Positive Cashflow
Speculation is normal in real estate investing. Leveraging debt is an efficient way to take advantage of solid opportunities. That said, a positive cash flow is a crucial element of overall fiscal security. If you are looking at using a hard money loan, make sure you find favorable rates from a private money lender. But before finalizing your loan make sure to read the fine print. For example, are there pre-payment penalties, hidden fees, credit checks, etc..

Manage Personally or With a Management Group
Managing a real estate investment portfolio can quickly develop into full-time work. The skills and interests necessary to steer a portfolio long-term are different from those needed to select a property initially or to renovate it. A management group can help you with the process.

Diversify Your Portfolio
One way to weather changes in the market is to have a diverse portfolio. In Colorado, a portfolio that incorporates both commercial and residential properties is especially useful for most real estate investors. Diversification mitigates risk, which means lows aren’t quite so low and highs can still be very high.

Have a Cushion When Looking for Your Next Property
When you decide to buy an investment property in Colorado, there are many steps you can take to protect your interests: Reviewing boundary lines, inspections, thorough underwriting, etc. Still, the unexpected can happen so be sure you have sufficient funds ready to help in the event a new investment property has any surprises.

Successful real estate investments start with the right funding package. Indicate Capital has helped investors to begin and/or grow their Colorado real estate portfolios with a wide range of loan options. We make the process simple so you can move forward on your goals quickly. Indicate Capital is a reliable name that works with real estate investors of all types.

To get started today, all you need to do is fill out our simple hard money loan application.