Hard Money Lender in New Britain, CT
Rates Starting at 10%
West Forest Capital is a New Britain hard money lender, offering financing for real estate projects up to $3 million. Our reputation as the fastest hard money lender in New Britain comes from our understanding that every single day can be decisive in New Britain’s competitive real estate landscape.
- We are a direct lender, not a broker
- Same day pre-approval
- Funding in 3-5 days, although 1 day is possible
- Loan amounts up to $5 million
Property Types
- Multi-family
- Single-family Investment Properties
- Condominiums
- Apartments
- Co-ops
- Retail
- Small Office Buildings
- Industrial & Warehouse
- Duplex
- Triplex
- Quadplex
- Mixed-Use
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 |
Counties Covered
West Forest Capital lends in the following locations in New Britain:
- Downtown New Britain
- Stanley Works Historic District
- Walnut Hill Park
Recently Funded Hard Money Loans
Jersey City, NJ
Newark, NJ
Elizabeth, NJ
Recently Funded Hard Money Loans in New Britain, CT
Bloomfield, CT
- Location: Bloomfield, CT
- Purchase Price: $425,000
- Rehab Budget: $0
- Loan Amount: $350,000
- ARV: $550,000
- Exit Strategy: Construction Loan
- Investor Capital: $75,000
- Equity Created: $125,000
- Investor Return on Capital: 167%
Our client has been accumulating several homes and lots on the same block for the last several years with the plan to construct a large 50-unit multi-family building on the combined lots. A Connecticut hard money loan in Bloomfield was used to acquire this home, the 8th and final property. After the acquisition, our client has been working with the town to obtain permits, and with an architect to create plans for the proposed conversion. Our client will next secure a permanent construction loan to move forward with the project.
New Britain, CT
- Location: New Britain, CT
- Purchase Price: $350,000
- Rehab Budget: $35,000
- Loan Amount: $245,000 at Closing
+ $35,000 Rehab = $280,000 - ARV: $430,000
- Exit Strategy: Rent & Refinance
- Investor Capital: $105,000
- Equity Created: $45,000
- Investor Return on Capital: 43%
Our client needed a fast Connecticut hard money loan in New Britain to close on a contact which had been in place for several months. This is a strong cashflow mixed-use property which contains two commercial units on the ground floor and four apartments on the second floor; the property needed only light rehab, which we also funded 100%. Given the time sensitive nature of this loan, we were able to close in under 1 week after getting the call, including the time needed to get an appraisal. Our client is currently in discussions for a permanent rental loan refinancing, a service which we are also able to offer.
East Hampton, CT
- Location: East Hampton, CT
- Purchase Price: $100,000
- Rehab Budget: $50,000
- Loan Amount: $50,000 at Closing
+ $50,000 Rehab = $100,000 - ARV: $275,000
- Exit Strategy: Sale
- Investor Capital: $50,000
- Equity Created: $125,000
- Investor Return on Capital: 150%
Our client was able to secure a purchase contact significantly under market value. In addition, because our client wanted to minimize the interest rate on this Connecticut hard money, they elected to only borrow 50% of the purchase price. Although our minimum loan amount is usually $100,000, in this case we were comfortable releasing the rehab very quickly due to the value in the property. Our client used the rehab funds to quickly finish the rehab and put the property up for sale only 3 months later, paying off the loan a month thereafter. A month after that our client became a repeat borrower, taking out another hard money loan with us.
Why Use a Hard Money Loan
- If you need funding fast. When timing is essential, conventional lenders may require months to approve and fund a loan. West Forest Capital provides same day hard money approvals, and funding can usually be arranged within three to five days. In emergency situations, we can sometimes fund in just one day.
- If the property isn’t stabilized. Banks may decline financing for properties that need rehabilitation, lack a Certificate of Occupancy, or do not have a strong rental history. Hard money lenders such as West Forest Capital can step in and fund these properties without delay.
- If you have poor credit. Credit issues can arise unexpectedly, and West Forest Capital takes this into consideration. We generally focus on the property’s value rather than the borrower’s credit score or debt-to-income ratio when evaluating a loan.
- If you don’t want to take a loan in your personal name. Most banks require that properties are owned by the individual applying for the loan. For investors who prefer an LLC structure or own multiple properties, a hard money loan can provide the solution they need.
Why Choose A New Britain Hard Money Lender
Having served as a hard money lender throughout the tri-state region for many years, we have learned Connecticut very well, a fact that helps our borrowers greatly. Why? Because unlike national lenders or lenders only familiar with New York and New Jersey, we understand the value and potential in all parts of Connecticut and do not focus on a single area. Whether your project is in New Britain, Waterbury, or Hartford, we provide loans across the entire state.
Financing your New Britain Investment Property
Connecticut lacks a major central city, yet its population is distributed evenly enough to create a wide area of economic activity. In New Britain and nearby towns, the insurance industry is the largest, with a $16 billion payroll, exceeding the second-largest sector by more than $3.5 billion. Bioscience, media, and manufacturing industries also contribute meaningfully to the economy. Some real estate stagnation has provided opportunities to purchase properties under market value and has increased profit margins on rehabilitation projects.
Asset-backed Lender Focused on Customized Solutions
With our expertise in the Connecticut fix and flip market, West Forest Capital is able to structure creative transactions that fit your specific hard money financing needs. Loans are funded based on the value of the property, and in some cases, we have been able to finance more than 100 percent of both the purchase price and rehabilitation costs.
West Forest Capital also offers the longest term hard money loan on the market, lasting up to three years, which is perfect for buy and hold investors in New Britain and nearby towns.
Call us or submit a loan application today to begin your real estate investment journey in New Britain.
Frequently Asked Questions about New Britain Hard Money Loans
What are hard money lenders?
A hard money or private money lender provides an alternative route for financing real estate investments, with the property acting as collateral for the loan. Conventional loans assess credit scores, credit history, debt-to-income ratios, income verification, and other financial factors before approving or denying a loan. Hard money lenders, by contrast, focus their approval decisions on the value of the property being acquired. If the borrower fails to meet the repayment obligations, the lender is authorized to seize the property as a form of repayment.
How do hard money loans work?
Hard money lending is usually a short-term financing arrangement that allows borrowers to secure funds rapidly to close a real estate transaction. These loans are ideal for investment properties, residential or commercial, in competitive markets where speed is a deciding factor.
Loan approval and funding can often be completed in a matter of days, contrasting sharply with conventional lenders, where approvals and funding may take weeks or months.
The acquired property acts as security for the loan, and repayment periods are generally much shorter than those associated with conventional financing. Many lenders provide loans with flexible repayment options, and borrowers may be able to repay early, sometimes without prepayment penalties depending on the lender.
What do hard money lenders look for?
Hard money lending focuses mainly on the property’s value rather than the borrower’s personal credit score. While lenders may still consider credit history, it is not the primary factor in determining whether a loan is approved. Unlike traditional mortgages, hard money loans are evaluated based on the potential value of the property and the borrower’s exit plan. These loans frequently serve as short-term bridge loans for borrowers who plan to refinance through conventional lenders or sell the property. Because terms are shorter than traditional bank loans, borrowers can expect a faster repayment timeline.
What is hard money used for?
Hard money loans are commonly used for residential and commercial real estate deals and sometimes provide temporary funding until other financing or investors become available.
Real estate developers in New Britain rely on hard money lenders to secure construction loans, and investors frequently turn to private lenders to purchase properties that require extensive rehabilitation or repairs.
Is a down payment required?
Yes, a down payment is generally required for most hard money loans, though the amount can vary with the type of property involved. In contrast with traditional mortgage financing, hard money lenders often expect borrowers to contribute their own funds upfront. This serves to minimize risk for the lender while also demonstrating the borrower’s commitment to completing the project. The required down payment is usually determined by factors such as the value of the property, its condition, and the borrower’s prior experience with similar investments.