Fix and Flip Loans Boston
Rates Starting at 10%
West Forest Capital is a Boston fix and flip lender, financing real estate investments up to $5 million. We have gained a reputation as the fastest fix and flip lender in Boston because we know how critical each day is in Boston’s competitive real estate market.
- We are a direct lender, not a broker
- Same day pre-approval
- Funding in 3-12 days, although 1 day is possible
- Loan amounts up to $5 million
Property Types
- Multi-family
- Single-family Investment Properties
- Condominiums
- Retail
- Office Buildings
- Industrial & Warehouse
- Hotels & Motels
- Special Purpose & Mixed Use
- Parking Garages & Lots
- Land
Lending Parameters
| Loan Size | $100,000 to $5,000,000 |
| LTC | Up to 80% of purchase price |
| Rehab Funding | 100% |
| LTV | Up to 70% of the ARV |
| Term | Standard is 12 months. 24-36 months is available |
| Lien | First lien; second lien as additional collateral only |
| Interest Rate | 10%–12.5% |
| Points | 1.5–2% of the loan amount |
Neighborhoods Covered
West Forest Capital lends in the following neighborhoods in Boston:
- Allston
- Back Bay
- Bay Village
- Beacon Hill
- Brighton
- Charlestown
- Chinatown
- Dorchester
- Downtown
- East Boston
- Fenway
- Hyde Park
- Jamaica Plain
- Mattapan
- Mission Hill
- North End
- Roslindale
- Roxbury
- Seaport
- South Boston
- The South End
- The West End
- West Roxbury
Recently Funded Fix and Flip Loans
Medway, MA
- Location: Medway, MA
- Original Purchase: $225,000
- Current Value: $290,000
- Loan Amount: $200,000
- Exit Strategy: Refinance
- Investor Capital: $25,000
- Equity Created: $65,000
- Investor Return on Capital: 160%
This Massachusetts hard money loan was a cash-out refi, the proceeds of which were used by our client to build-out ancillary commercial space that is owned by our client in the same building. The subject property, a residential condo, was purchased for $225,000 and appreciated to $290,000. Utilizing a hard money loan in Medway, MA we were able to provide a cash-out $200,000 loan at 78% LTV by including the commercial space as additional collateral. The borrower was able to pull the vast majority of his investment out of the property, leaving only $25,000 in the deal, and generating a 160% return. Our loan was later refinanced by a traditional bank.
Dedham, MA
- Location: Dedham, MA
- Purchase Price: $412,000
- Rehab Budget: $47,000
- Loan Amount: $288,400 at Closing + $47,000 Rehab = $335,400
- ARV: $565,000
- Exit Strategy: Sale
- Investor Capital: $123,600
- Equity Created: $106,000
- Investor Return on Capital: 86%
This Boston area hard money loan was used to fix and flip a single-family house. The home was purchased after several rounds of negotiations and needed a new kitchen, bathrooms, and various cosmetic touch-ups. We provided 70% of the purchase price and 100% of the rehab costs. Our client, who had completed two other flips in the previous three years, was able to move through the project quickly. Within 4 months the entire rehab had been completed and the property was listed for sale. Demand was strong, and the property went into contact within three weeks of the listing date. Two months later, the property was sold and our loan repaid.
Boston, MA
- Location: Boston, MA
- Purchase Price: $1,370,000
- Rehab Budget: Not required
- Loan Amount: $890,500
- Exit Strategy: Refinance
- Investor Capital: $479,500
- Equity Created: $150,000
- Investor Return on Capital: 31.3%
This hard money loan was made to a foreign national purchasing a two-bedroom condo in the Back Bay neighborhood. With a light credit history and no US income, our client was not eligible for a traditional bank loan for this investment property. However, the client was able to put down a 35% down payment, and we utilized a Boston hard money loan to fund the remaining 65%. This loan also included a 6-month interest reserve. The property needed no rehab and was quickly rented out. After demonstrating 9 months of rental history, our client was able to refinance our loan into a long-term fixed DSCR loan.
Why Use a Fix and Flip Loan
- If You Need Rapid Funding: Unlike traditional banks that may take months to process your loan application, West Forest Capital offers same-day approval for fix and flip loans, with funding available in just 3-5 days. In urgent cases, we can even provide funding within 24 hours.
- Because the Property Requires Renovation: Traditional banks often shy away from financing properties that need rehab, lack a Certificate of Occupancy (CO), or have other issues. West Forest Capital specializes in funding fix and flip loans for properties that do not meet standard banking criteria.
- If You Have Less-Than-Perfect Credit: At West Forest Capital, we understand that situations come up in life that might impact credit. That’s why we focus on the property’s value rather than your credit score when underwriting the loan.
- It’s Investment Real Estate: Typically, banks require loans to be made to individuals. But you are purchasing the fix and flip as an investment and it should be treated as such by being in an LLC. This way, you get all of the benefits of owning an LLC, and the loan is structured as a business-purpose loan to your LLC.
Why Choose Us For Your Boston Fix and Flip Loans
We love helping real estate investors who are doing fix and flip projects in Boston, and we take pride in being a local Boston fix and flip lender. We understand the permit requirements and building regulations in Brighton, West Roxbury, or the Seaport District. We can also review your construction budget, provide feedback, and help structure your fix and flip loan in locations such as East Boston, Jamaica Plain, and Allston. Additionally, we know many of the contractors around the area, in towns such as Quincy and Brookline, have experience dealing with the city inspectors in the surrounding suburbs.
Financing Your Boston Investment Property
Boston is an excellent market to flip homes. The demand is there, and the housing stock is also available to be improved. Furthermore, the spread between the purchase price and rehab cost is attractive. At the same time, this environment creates a competitive market and many real estate investors are looking to fix and flip projects in Boston. Our team at West Forest Capital is ready to not only help you stand out to the seller by committing cash-equivalent capital but will also make sure your fix and flip goes smoothly.
Asset-backed Lender Focused on Customized Solutions
We are guided by the current “as-is” market value, the renovation costs, and the “after-repaired value.” We are easy to work with and typically provide a large amount of the purchase price and 100% of the rehab costs. We are also flexible: if you do the construction out of order from your original schedule, or have a budget overrun, we will work with you to make sure your fix and flip in Boston is successful
West Forest Capital also offers the longest fix and flip loan available on the market (2 years), which is a great option for those projects that may take a bit more time.
Call us today and let’s talk about your loan scenario. Most likely, we will be able to fund you.
Frequently Asked Questions
What are fix and flip lenders?
West Forest Capital stands out as a premier fix and flip lender, specializing in asset-based loans that prioritize property value over credit history. Unlike conventional banks, we provide rapid and dependable funding, ensuring loan approvals and access to funds in a matter of days. Our streamlined process in Boston is ideal for investors engaged in property rehabilitation projects or dealing with properties lacking a Certificate of Occupancy.
How do fix and flip loans work?
Securing a fix and flip loan with West Forest Capital in Boston is simple and hassle-free. Our interest rates range between 9% and 12%, with additional closing fees. We typically finance up to 85% of the property’s purchase price and cover 100% of the renovation costs, disbursed in stages as the work progresses. These short-term loans are structured to ensure that the total financed amount does not exceed 65% of the property’s after-repair value (ARV).
What do fix and flip lenders look for?
As a private money lender, we primarily offer loans to LLCs rather than individuals. Our process involves assessing both the purchase price and the after-repair value (ARV) to confirm the investment’s potential. Key factors include acquiring properties at or below market value, adhering to a predefined rehab schedule, and ensuring a clear title. Our goal is to support your investment success and ensure smooth loan repayment.
What is a fix and flip loan used for?
West Forest Capital’s fix and flip loans are tailored for real estate investors, especially when traditional banks are hesitant. These loans provide the speed and flexibility necessary for purchasing and renovating properties for resale or rental, and for quick auction purchases. Additionally, they are ideal for cash-out refinancing, refinancing existing mortgages, and purchasing properties under an LLC—options typically unavailable through conventional banks.
What should I consider before applying for a fix and flip loan for a fix and flip in Boston?
Before applying for a fix and flip loan, assess the property’s profit potential and develop a solid renovation plan. At West Forest Capital, we evaluate the feasibility and profitability of your project as your private lender. To maximize the benefits of financing with us, it’s crucial to understand the loan terms and ensure they align with your project’s timeline and budget.
How quickly can I access funds once approved for a fix and flip loan?
After approval, West Forest Capital’s swift funding process truly sets us apart. Funds for your fix and flip project are typically disbursed quickly, allowing you to purchase and renovate your property without delay. This efficiency has cemented our reputation as a preferred lender in the competitive real estate market.
