Colorado Private Money Lending:
Licensing, Compliance & Documents

By Anthony Geraci, Managing Partner & CEO, Geraci LLP  |  November 2025

Colorado is a strong private money lending market centered on the Denver metropolitan area, with additional activity in Colorado Springs, Boulder, and Fort Collins. Strong population growth, high property values, and an active fix-and-flip market drive demand. The public trustee foreclosure system provides a relatively efficient and predictable enforcement process.

This guide covers the essential licensing, usury, foreclosure, and document requirements for private money lenders originating loans in Colorado.

Related: Usury Laws by State  |  Deed of Trust vs. Mortgage Guide  |  How to Lend in Multiple States

Licensing Requirements

Colorado does not require a state lending license for private money lenders making business-purpose loans. Consumer lenders must be licensed under the Colorado Uniform Consumer Credit Code. Mortgage companies originating consumer mortgage loans must hold a Mortgage Company Registration.

Key Compliance Considerations

Colorado uses a unique public trustee foreclosure system. The county public trustee (a government official) conducts the foreclosure sale, which provides a more standardized and predictable process than private trustee sales in other states.

Colorado provides a 75-day redemption period after the foreclosure sale during which the borrower can redeem the property by paying the full sale price plus costs. This extends the total timeline beyond the initial foreclosure process.

Colorado requires specific notice provisions for deed of trust foreclosures, including mailing to the borrower and recording with the county clerk and recorder at least 110 days before the sale.

The state has seen significant regulatory attention to lending practices in recent years, particularly around consumer lending. Private money lenders should maintain clear business-purpose documentation.

Document Requirements for Colorado Private Money Loans

Colorado private money loans require a deed of trust as the primary security instrument, along with a promissory note, loan agreement, personal guaranty (for entity borrowers), and state-specific disclosures and compliance riders. For fix-and-flip and construction loans, draw agreements, scope of work exhibits, and completion guarantees are also required.

Automate Loan Docs generates complete, Colorado-specific document packages that comply with all applicable state requirements. Every template is drafted by the attorneys at Geraci LLP, whose team has over 30 years of combined experience advising private money lenders across all 50 states — including extensive experience with Colorado lending transactions.