Colonial Capital, LLC

Colonial Capital, LLC Colonial Capital, LLC is a regional, privately held Arizona-based lending firm. We specialize in prov

Highlight of our recent closing! Property Type: ResidentialTotal Size: +/- 4,395-SF, 4 bed/5 bath single family home on ...
07/23/2024

Highlight of our recent closing! Property Type: Residential

Total Size: +/- 4,395-SF, 4 bed/5 bath single family home on ~0.42-ac lot

Location: The subject property is located directly off W Lambert Ln, just West of N Oracle Rd (State Route 77).

Loan Monies Plan: Refinance and continued construction of a single family residence. Due to the nature of the loan, it will be funded in two separate tranches. Additionally, six months of interest payments will be released after close in the form of an interest reserve. Construction has been underway and overall, the home is about 55% completed.
*The property is expected to be completed by late November of 2024*

Buckeye, Arizona has exploded in growth in recent years, transforming from a quiet town to a booming center of developme...
04/03/2024

Buckeye, Arizona has exploded in growth in recent years, transforming from a quiet town to a booming center of development in the West Valley. This surge is fueled by several factors.
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👉Location: Buckeye’s proximity to California makes it attractive for businesses looking to serve the state without operating there. Buckeye can meet the crucial 11-hour turnaround time for trucking to reach California ports.
👉 Land Availability: Buckeye has a vast amount of undeveloped land, allowing for future growth and attracting businesses seeking affordable space.
👉 Business-Friendly Environment: Buckeye actively fosters a welcoming environment for businesses through initiatives like Foreign Trade Zones, reducing taxes for qualified companies. This has attracted a diverse range of industries, from manufacturing to distribution.
👉 Strategic Planning: Buckeye’s long-term vision includes large-scale projects like Teravalis, a massive mixed-use development planned to house 300,000 people. This development will include residential areas, commercial space, and a hospital.
👉 Speculative Development: Buckeye is also building speculative warehouse and commercial space to ensure businesses have readily available space without waiting for construction.
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Overall, Buckeye’s strategic planning, ample land, and business-friendly environment have positioned it as a major development hotspot in Arizona.

ANOTHER RECENTLY FUNDED WE WANT TO SPOTLIGHT!253 S Broad St., Globe, AZ 85501⬇️ ⬇️Property Type: Residential & Commercia...
04/02/2024

ANOTHER RECENTLY FUNDED WE WANT TO SPOTLIGHT!

253 S Broad St., Globe, AZ 85501
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Property Type: Residential & Commercial, Residential/Retail
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Total Size: 13,022-SF retail/residential parcel, zoned C-3, that contains a +/-9,240-SF two-story mixed-use building constructed in 1910. The building space includes +/- 4,218-SF of retail space (first floor) and +/- 5,022-SF of residential space (second floor).
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Location: Globe, AZ just off U.S. Route 60, off the corner of S Broad St & E Cottonwood St on Broad Street in Downtown Globe.
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Loan Monies Plan: Refinance the entire property. Note that the residential rental space is divided into 9 units with differing unit mix and size. Most all of the tenants work for the local mine (owned and operated by the global mining company Freeport McMoRan for 90 + years)

thank you so much for tuning into our A-Z Lending! series. We have explored everything from ‘Appraisals’ to ‘Zoning’! ...
04/02/2024

thank you so much for tuning into our A-Z Lending!

series. We have explored everything from ‘Appraisals’ to ‘Zoning’!

We appreciate you following along on our journey ✅ ”

What is “ZONING”?We know you’re a real estate rockstar, but zoning can get a little tricky. As your hard money lending p...
03/29/2024

What is “ZONING”?
We know you’re a real estate rockstar, but zoning can get a little tricky.

As your hard money lending partner here at Colonial Capital, we wanted to break down why zoning is a BIG deal when it comes to your loan.
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Think of zoning as the rulebook for your property. It tells you exactly what you can and can’t do with the land.  

This can be anything from building a single-family home to running a bustling coffee shop.

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ZONING & HARD MONEY LOANS
👉🏼Loan Value: The zoning of a property can affect how much money we can lend you. Land zoned for commercial use might have a higher potential value than residential, which could mean a bigger loan for you!
👉🏿Project Feasibility: If you’re planning a ground up construction or a rehab project, zoning makes sure your dream renovation is actually allowed. Don’t get stuck with a property zoned for single-family homes when you want to build apartments!

• • •

THE BOTTOM LINE
Zoning is like the foundation of your project. Understanding it helps us understand the potential of your property and get you the funding you need to make it happen.

If you’re ever unsure about zoning for a property you’re eyeing, don’t hesitate to reach out!  We’re happy to chat and help you navigate the zoning jungle.

WE WANT TO CELEBRATE A RECENT CLOSING! CHECK IT OUT...995 E Warner Rd., Chandler, AZ 85225👇 👇 👇Property Type: Commercial...
03/26/2024

WE WANT TO CELEBRATE A RECENT CLOSING! CHECK IT OUT...

995 E Warner Rd., Chandler, AZ 85225
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Property Type: Commercial, Retail
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Total Size: ~84,332-SF of commercial, unimproved, vacant land.
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Location: This district in Chandler AZ is intended to serve several functions with is predominant use being retail trade and service.
The area offers several large master planned communities with moderate to higher priced housing with common area amenities including man-made lakes, community golf courses, open space and parks
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Loan Monies Plan: The subject site is currently unimproved vacant land zoned C-2. The planned development for the subject site is a national drive-thru tenant with a combination of build-to-suit and/or ground lease pad; several tenants have expressed an interest in the property.

What is “YIELD TO COST”?Evaluating potential real estate investments involves careful consideration of both costs and re...
03/22/2024

What is “YIELD TO COST”?
Evaluating potential real estate investments involves careful consideration of both costs and returns. A key metric in this analysis is yield on cost (YoC).
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YoC is a financial metric that measures the annualized return you expect to generate on the total cost of your real estate investment.

It’s essentially a percentage that compares your potential profit to the overall investment amount.
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WHAT’S THE FORMULA? SWIPE TO SEE!
👉🏼Annual Net Operating Income (NOI): This represents the yearly income generated by your property after subtracting all operating expenses (excluding loan payments).
👉🏼Total Investment Cost: This includes the purchase price of the property, renovation costs (if applicable), and any hard money loan amount.

YIELD TO COST & HARD MONEY LENDING
In hard money lending, YoC plays a crucial role in determining the viability of your project. Hard money lenders typically consider YoC when assessing loan applications.

A strong YoC indicates a higher potential for a successful investment and timely loan repayment.

Here’s how YoC benefits BORROWERS:
👉🏼Stronger Loan Applications: A high YoC demonstrates the project’s potential profitability, increasing your chances of securing a hard money loan.
👉🏼Informed Investment Decisions: By calculating YoC, you can compare different investment options and choose the one with the most promising return on your investment.

What is “XYL CROSS YARD LEASE”?An XYL Cross Yard Lease is a creative financing arrangement involving three parties:👉🏼Gra...
03/15/2024

What is “XYL CROSS YARD LEASE”?
An XYL Cross Yard Lease is a creative financing arrangement involving three parties:
👉🏼Grantor (X): The owner of the property that will be used as collateral for the loan. This is typically the borrower seeking the hard money loan.
👉🏼Your Entity (Y): A legal entity you establish specifically for the project. This entity will be the lessee of the property and will hold the rights to develop or improve it.
👉🏼Lender (L): The hard money lender, in this case, our company.

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HOW DOES IT WORK FOR HARD MONEY LENDING?
In the context of a hard money loan, the XYL Cross Yard Lease functions as follows:
* Lease Agreement: X (as the Grantor) establish a lease agreement with your newly formed entity (Y) for the property. This lease outlines the terms of occupancy, rent payments (which can be nominal), and the duration of the lease.
* Loan Collateral: The lease agreement creates a separate legal interest in the property for your entity (Y). This leased interest can then be used as collateral for the hard money loan from us (the Lender).
* Loan Proceeds: Once the lease is established and the loan is approved, we (the Lender) will disburse the loan proceeds to your entity (Y) which can then be used to finance the development or improvement of the property.
* Exit Strategy: Your exit strategy will depend on your project goals. Upon completion of the development, you can choose to sell the property outright, refinance the loan using the increased value of the property, or potentially negotiate a purchase of the leased interest from your entity (Y).

🚨COLONIAL RECENT CLOSING 🚨Property Type: Commercial, IndustrialTotal Size: two industrial buildings totaling +/- 94,720-...
03/08/2024

🚨COLONIAL RECENT CLOSING 🚨
Property Type: Commercial, Industrial

Total Size: two industrial buildings totaling +/- 94,720-SF on +/- 5.28 acres of industrial zoned land

Location: Southwest Phoenix Industrial Submarket just south of the ever-growing I-10 corridor and on the Southwest corner of North 48th Avenue and West Van Buren Street.
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NOTE: the property is currently in escrow via a sale-leaseback transaction. After the sale, Zummit Plastics will sign up to a 12-month bridge lease while the company prepares to move its operation to Atlanta, GA, and Lord & Sons will agree to sign a brand new, 10-year triple net lease with annual 4.00% bumps.

What is “WORKING CAPITAL”?Imagine your business as an engine. Working capital is the fuel that keeps it running smoothl...
03/08/2024

What is “WORKING CAPITAL”?

Imagine your business as an engine. Working capital is the fuel that keeps it running smoothly. It covers your day-to-day expenses, like payroll, rent, and inventory costs, ensuring you have what you need to operate until your sales come in. Unlike long-term loans used for big purchases, working capital loans are short-term solutions to bridge cash flow gaps.

In simple terms, working capital refers to the difference between your current assets and current liabilities.
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Current Assets: These are resources that can be quickly converted into cash within a year. In real estate, this could include things like:
👉🏼Security deposits from tenants
👉🏼Prepaid rent
👉🏼Inventory of any materials needed for repairs or renovations
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Current Liabilities: These are short-term debts that need to be paid within a year. Examples in real estate investing include:
👉🏼Unpaid invoices to contractors
👉🏼Upcoming property taxes
👉🏼Interest payments on existing loans

What is “VARIABLE RATE”?We know...these two words can send shivers down spines…but let’s break it down from a lender’s p...
03/04/2024

What is “VARIABLE RATE”?
We know...these two words can send shivers down spines…but let’s break it down from a lender’s perspective, unpacking its benefits and considerations for borrowers, brokers, and investors alike.
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First things first: Unlike the predictable rhythm of a fixed rate, a variable one dances to the beat of a changing index, typically tied to prime rate or the Treasury bill rate.

This means the interest rate fluctuates along with the index, potentially rising or falling during the loan term.
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Swipe to see a PROS & CONS LIST breakdown of variable rates. Also, subscribe to our newsletter by shooting us a Direct Message! We elaborate on variable rates, who they are for, and why they matter to team Colonial 👍🏼

What is a “TRUSTEE SALE”?Imagine a borrower drowning in mortgage debt. No matter how hard they paddle, they just can’t s...
02/16/2024

What is a “TRUSTEE SALE”?
Imagine a borrower drowning in mortgage debt. No matter how hard they paddle, they just can’t stay afloat. 💸

Enter the trustee: a neutral third party (usually a lawyer or title company) tasked with selling the property to recoup the lender’s money. This sale is a trustee sale – a public auction open to the highest bidder.
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WHY ARE LENDERS INTERESTED IN THESE?
Hidden gems: These properties haven’t been meticulously staged or prepped. Get ready to unearth diamonds in the rough with serious fixer-upper potential. 💎
NOT TO MENTION: Quick turnaround: Skip the traditional lending snail race. Trustee sales are cash-only, meaning you can close in days, not weeks.
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Subscribe to our newsletter by shooting us a Direct Message! We go into WAY more detail about Trustee Sales 👍🏼

Address

4222 E Thomas Road, #330
Phoenix, AZ
85018

Opening Hours

Monday 9am - 5pm
Tuesday 9am - 5pm
Wednesday 9am - 5pm
Thursday 9am - 5pm
Friday 9am - 5pm

Telephone

+16022240745

Website

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