Hard Money Lender in Hudson, NY

Hard money lenders are non-bank providers of asset-based loans. Both banks and hard money lenders issue mortgages, but the way they evaluate applications differs greatly. Hard money lenders are primarily concerned with the property that secures the loan, while banks typically focus on the borrower’s personal financial strength and credit history. This means hard money lenders can approve and fund loans within a week, while banks may take several months.

Investors buying at foreclosure auctions or under strict timeframes often use hard money financing, since auction rules require immediate closings. These loans are also commonly used for properties needing extensive rehabilitation or those missing a Certificate of Occupancy. In markets such as Hudson, where timing is critical, investors often depend on hard money loans to finalize purchases.

At West Forest Capital, we specialize in deals that banks avoid. We also fund loans for borrowers with poor or improving credit histories, since a low FICO score is not a barrier to approval. In addition, we provide refinancing and cash-out loan programs, ensuring that investors maintain financial flexibility to act quickly in competitive situations.

One of the main reasons borrowers turn to hard money loans is the speed and ease of approval compared to traditional bank mortgages. However, this benefit is balanced by higher interest rates, which usually range from 10 to 12 percent, with two additional points collected at closing. These loans are short-term, generally running for one or two years, and are sometimes organized into two separate portions.

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.

If rehabilitation is required, the funds for that portion of the loan are released in arrears, or after progress has been made on the project. As an example, if the loan includes $50,000 in rehab funds, the borrower might complete $15,000 in work before requesting reimbursement of that amount from the lender. This process continues step by step until the renovation budget is fully disbursed.

Hard money loans are commonly used for purposes such as bridge loans, fix and flip projects, and commercial real estate financing. They are structured in a way that ensures the total loan amount, including both purchase and rehab, remains within 65 percent of the ARV. Their flexibility and speed make them a popular tool for real estate investors who need to close deals quickly in highly competitive markets.

At West Forest Capital, the loans we provide are categorized as commercial hard money loans, which means they are extended to LLCs instead of individual borrowers. If you have not yet created an LLC, there is no need to worry, because forming one is both quick and simple, and it can be done with only one member, which can be you.

When analyzing a potential loan, we examine both the property’s purchase price and its ARV, or After Repair Value, to confirm that the numbers are in line with a profitable investment. Properties that are purchased below or at market value are generally the strongest candidates, particularly when renovation funds are also being requested. In such cases, we require a renovation plan that outlines a specific timeline and ensures that the work will be completed on schedule. Another condition of funding is a clean title, which requires that any liens or judgments connected to the property or the LLC be cleared prior to loan disbursement.

Our focus is on ensuring that our clients’ investments succeed. Like many other lenders in this space, our intention is to verify that your deal has enough margin to cover all necessary expenses, including the purchase price, renovations, loan interest, closing costs, and other items, while still leaving a clear profit. This principle directs how we underwrite every loan.

For those who invest in Hudson real estate or who are operating under time constraints, West Forest Capital provides a dependable solution with both speed and flexibility.

A hard money loan is most often taken advantage of in the following scenarios:

• To purchase and fix a property that a traditional bank will not lend on, often due to the borrower’s credit history or the property’s current state. Once repairs are made, the property can be sold to a retail buyer. This is referred to as fix and flip.
  
  
• To buy and renovate a property that banks reject for financing and then rent it out. Once stabilized with consistent rental income, the property may qualify for refinancing with a bank at a lower rate.
  
  
• To fund real estate deals that need to close within days, such as foreclosure auctions, where banks simply cannot keep pace. Hard money lenders can often provide financing within a week compared to the months it takes traditional banks.
  
• To take out cash quickly through refinancing, using property already in ownership as collateral.
  
• To quickly refinance an existing mortgage on a property that is coming due.
  

To buy out a co-owner, whether a partner or a family member. Hard money loans can be used for this purpose and then replaced with long-term financing once full ownership is secured.