Hard Money Lender in Yonkers, NY

Hard money lenders are private, asset-based lenders rather than banks. While both banks and hard money lenders offer mortgage loans, the requirements and overall lending criteria are often quite different from what a traditional bank may demand. Hard money lenders place greater emphasis on the property itself as collateral rather than the financial history of the borrower. This results in a much shorter underwriting process, with loans often being approved and funded within a week, compared to the two or three months or longer that banks may require. Real estate investors, particularly those purchasing foreclosures at auctions, often rely on private money lenders to complete their deals. Auction sales typically demand quick closings, making hard money loans a vital option. These loans are also especially useful when properties require repairs or do not yet have a Certificate of Occupancy. Investors in Yonkers consistently depend on hard money financing to stay ahead in a very competitive real estate environment. At West Forest Capital, we provide funding for properties that conventional banks are not willing to finance, and we are also able to assist borrowers with poor credit or those working on rebuilding it. A low credit score will not prevent you from getting the financing you need. In addition, we offer loans for refinancing and cash-out purposes, giving investors flexibility and the ability to move quickly when opportunities arise.

Because hard money loans are much faster and easier to obtain than traditional bank mortgages, the interest rates tend to be higher. Rates typically fall in the range of 10 to 12 percent, with an additional two points charged at the time of closing. The loan terms are generally structured for either one year or two years and are sometimes divided into two parts.  

1. Funds for the purchase, typically cover 70 to 85% of the purchase price.
2. Funds for rehab, if necessary, which may cover up to 100% of the renovation costs.

  When a property requires rehabilitation work, the rehab funds are distributed in arrears, meaning after portions of the work have been completed. For example, if $50,000 has been allocated for renovation, the borrower may first complete $15,000 of work, then request reimbursement of $15,000 from the lender. This process continues in stages until all of the renovation work is finished. Hard money loans are most often used in the form of bridge loans, fix and flip loans, and commercial real estate loans. They are structured so that the combined loan amount, which includes both the purchase price and the renovation funds, does not exceed 65 percent of the property’s ARV, or After Repair Value. These loans are frequently applied to investment properties in highly competitive markets where quick funding is essential to closing deals successfully.

At West Forest Capital, we provide hard money loans structured as commercial loans, meaning we extend financing directly to LLCs rather than individuals. If you do not yet have an LLC, that is not a problem, because forming one is both quick and straightforward and can even be set up with just a single member, which may simply be you. When we evaluate a loan request, our review process considers both the purchase price of the property and its ARV, which is the After Repair Value, in order to confirm that the transaction is financially sound. Properties that are purchased either below market value or at market value generally qualify more easily, particularly if the request also includes funds for renovations. In these situations, we look for a renovation plan that is laid out with a clear schedule and a commitment to complete the work on time. It is also important to have a clean title, as we cannot release funds until any liens or judgments connected to the property or the borrowing LLC have been resolved. Our objective is to position our clients for success. As with most hard money lenders, our goal is to see your real estate investment generate strong returns. We carefully assess the deal to ensure there is enough margin to cover not only the purchase price and renovation expenses but also loan interest, closing costs, and other project-related expenses, while still providing room for profit. This is the guiding principle in how we underwrite each loan. For real estate investors in Yonkers, especially those facing strict deadlines, a private money lender such as West Forest Capital can provide the speed and flexibility you need to move forward with confidence.