Hard Money Lenders Delray
Rates Starting at 10%
West Forest Capital is a Delray hard money lender, financing real estate investments up to $5 million. We have gained a reputation as the fastest hard money lender palm beach in Florida because we know how critical each day is in competitive real estate market of Delray.
- 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
- 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 |
Counties Covered
West Forest Capital lends in the following counties in Florida:
Recently Funded Hard Money Loans in Palm Beach County
Palm Beach Gardens , FL
- Location: Palm Beach Gardens, FL
- Purchase Price: $325,000
- Rehab Budget: $65,000
-
Loan Amount: $243,750 at Closing
+ $65,000 Rehab = $308,750 - ARV: $525,000
- Exit Strategy: Sale
- Investor Capital: $81,250
- Equity Created: $135,000
- Investor Return on Capital: 166%
Our client is an experienced investor in the Palm Beach County area and found this off-market home after contacting homeowners in the vicinity of another project. While the home was livable, it was not updated, and needed significant repairs (kitchen, floors, bathrooms, paint, roof, HVAC). Utilizing a Palm Beach County hard money loan in Palm Beach Gardens, our client completed the work and sold the home in a 9 months period, yielding nearly a 200% gain on his original investment.
West Palm Beach, FL
- Location: West Palm Beach, FL
- Purchase Price: $290,000
- Rehab Budget: $30,000
-
Loan Amount: $232,000 at Closing
+ $30,000 Rehab = $262,000 - ARV: $400,000
- Exit Strategy: Rent & Refinance
- Investor Capital: $58,000
- Equity Created: $80,000
- Investor Return on Capital: 138%
This was our client’s first real estate deal. Our client sought to take advantage of the momentum in West Palm Beach’s real estate market and anticipated rent increases in the area. Although this was a new real estate investor, they received 80% of the purchase price and 100% of the rehab costs. As a local Palm Beach hard money lender in West Palm Beach, we were comfortable that our client was buying below market in this building. After doing cosmetic repairs (primarily removing the carpet and updating the kitchen), our client found a great tenant and refinanced into a rental loan.
Boynton Beach, FL
- Location: Boynton Beach, FL
- Purchase Price: $437,500
- Rehab Budget: $55,000
-
Loan Amount: $339,000 at Closing
+ $55,000 Rehab = $394,000 - ARV: $570,000
- Exit Strategy: Sale
- Investor Capital: $98,438
- Equity Created: $87,500
- Investor Return on Capital: 89%
Our client obtained a Palm Beach County hard money loan in Boynton Beach to booster his offer for the property which beat out several other offers with conventional financing. After the needed repairs were completed, the exit strategy was flexible: either a sale or a conventional refinancing once the property was stabilized and rented. Ultimately, our client came across another fix and flip opportunity and elected to sell the rehabbed original property to raise cash for a down payment on the next deal.
Why Use a Hard Money Loan
- If you need funding fast. While a typical bank may take months to review your loan application, West Forest Capital offers same day hard money loan approval in Delray Beach, and funding within 3-5 days. In an emergency situation, we can even fund in 1 day!
- If the property isn’t stabilized. Sometimes, it’s not a question of time, but it’s the actual property that a traditional bank won’t finance. Examples include a property that requires rehab, missing a Certificate of Occupancy (CO), or does not have a strong rental history. Hard money lenders west palm beach such as West Forest Capital will be able to fund the real property when a bank can’t.
- If you have poor credit. West Forest capital understands that events that negatively influence one’s credit score can happen from time to time. Therefore, we mostly consider the value of the property, rather than FICO score or debt-to-income ratios when considering funding a loan.
- If you don’t want to take a loan in your personal name. A traditional bank is likely to require that a real property is owned directly by an individual they are making the loan to. If you would like to own the property in an LLC, or if you own too many properties for a bank to finance you personally, a hard money loan in Delray Beach is a great option.
Why Choose a Delray Hard Money Lender
Delray Beach, Florida has evolved into a city to be. We have seen a huge increase in investor demand for all parts of the city – both north and south of Atlantic Ave. Older single-family homes with sizable lots are being bought and replaced with new construction larger homes. Likewise, demand for condos, particularly in desirable areas close to the beach has also been very strong. Perhaps the highlight of the Delray real estate market, however, has been duplex and multi-family, both of which benefit substantially from rising rents and an ever-growing Airbnb and vacation rental market.
As a local Delray Beach hard money lender, we understand the value proposition and your vision as an investor. Therefore, we act fast to fund your loan and ensure a smooth closing. By fully funding any required rehab, we make it easy for real estate investors to complete renovations or even gut rehab anywhere in Delray Beach by utilizing our hard money loan program.
Financing your Delray Beach Investment Property
When obtaining a hard money loan in Delray Beach, Florida, it’s important to demonstrate your commitment to the real estate investment – that could be in the form of a downpayment on a purchase, or significant equity remaining on a cash-out refi. We can help in all situations: on a fix and flip, if you have subpar credit, or are just looking for fast financing. Laying out your construction budget is an important step to obtain rehab funds, and having a clear exit plan (refinancing or a sale) is also a key factor when applying for a hard money loan in Delray.
All real estate is local, so being familiar with the Delray Beach area, as well as the local regulations is also very helpful when looking for a hard money loan. What is less important is having strong credit or showing high income – to emphasize, we lend on the asset (your real estate investment), not to you as an individual.
Asset-backed Lender Focused on Customized Solutions
We are committed to delivering the best hard money loan product to investors in Delray Beach, Florida. This means the best combination of rates and LTV. As a direct lender with an easy process, we require very little documentation, and stake our reputation on the time it takes to fund your hard money loan. The hard money loans we provide are based on the value of the property, which means if you are buying the property at significantly below market value, we may be able to finance 100% of your purchase price.
West Forest Capital also offers the longest hard money loan available on the market (3 years). This duration is ideal for investors that need a longer time period to stabilize the property before exiting the hard money loan.
We pride ourselves on being easy to work with. Get in touch with us today to discuss your financing needs.
If you need a hard money loan fast, we will deliver. Once you call, you’ll get a preliminary approval right on the phone, and a term sheet will be issued the same day.
FAQs
What are hard money lenders?
Hard money lenders are non-bank, asset-based lenders. Although both banks and hard money lenders make mortgage loans, hard money lender requirements and lending criteria often varies significantly from a traditional bank. Hard money lenders put much more emphasis on the underlying property, and less emphasis on the borrower. The underwriting process is significantly shorter with a hard money lender, and a loan can often be funded within a week (as opposed to 2-3 months or longer with a traditional bank). As such, real estate investors that buy foreclosures at auctions will often use a hard money lender to fund the purchase because the terms of the auction require an expedited closing process. Also, hard money lenders fund loans on properties that a traditional bank won’t fund — an example is a property that doesn’t have a Certificate of Occupancy (CO). A hard money lender is also a great choice for somebody who has poor credit or is rebuilding their credit; a low FICO score will not prevent you from getting a hard money loan. Finally, hard money lenders can also provide loans to refinance existing lenders or as way to cash out on a property.
It’s important to note that hard money lenders only lend on investment real estate, and do not make mortgages for residential purposes. You cannot live in a property that has a mortgage from a hard money lender.
How do hard money loans work?
Because it’s significantly easier and faster to obtain a hard money loan, the interest rate will be higher than a traditional mortgage from a bank. Interest rates will vary between 9 and 12%, and there will also be between 1 and 3 points charged at closing. The term of the loan will typically be 1 or 2 years. The loan will usually come in two parts: (part 1) to fund the purchase, an amount that will often be between 70-85% of the purchase price and (part 2) funding for any rehab that needs to be done on the property to bring the property to an updated condition; hard money lenders often fund up to 100% of the rehab amount. If no rehab is required, it will not be included in the loan. If rehab is required, it will be distributed in arrears, after a portion of the work is completed. For example, assuming that $50,000 of total rehab is needed, the borrower may complete the first $15,000 of the work and ask to be funded $15,000 by the lender. They will then complete the next $15,000 of work and be funded $15,000 again. And so on. Hard money loans are usually structured so that the total loan amount (funds lent on the purchase plus funds lent for the rehab) does not exceed 65% of the property after-repair-value, known as “ARV.”
What do hard money lenders look for?
Because a hard money loan is considered a commercial loan, a hard money lender will not lend to individuals, and will only lend to LLCs. But don’t worry if you don’t have an LLC, they are very easy to create and can have only one member (you).
Hard money lenders analyze both the purchase price as well as ARV to make sure they can get paid back on loans they make. A property that is bought below or at market is an important aspect in obtaining a loan. If borrower is also taking out a loan for rehab purposes, a hard money lender will want to make sure that the repairs are being done according the repair schedule and on time. A clean title is also essential when obtaining a hard money loan. Any judgements or liens on the property or LLC that is taking out the loan (remember, the loan must be made to an LLC), will have to be cleared prior to the loan being disbursed.
It’s important to a hard money lender that their borrower is entering into an investment or transaction that will be profitable for the borrower. In other words, the hard money lender wants you to make money on your real estate investment, so that they can get paid back on their loan. The lender will ensure that there is enough “spread” in the deal, which means that the ARV will cover the purchase price, rehab costs, interest on the loan, closing costs, and any other associated fees with sufficient room left over to make the investment profitable for their client.
What is hard money used for?
- To purchase and repair a property that a traditional bank will not lend on (either because of the property itself or because of the borrower’s credit), which will then be sold to a retail buyer. This is commonly called “fix and flip.”
- To purchase and repair a property that a bank will not lend on, which will then be rented out. Once rented, the property will be considered “stabilized,” and may be refinanced with a traditional bank at a lower rate.
- To fund real estate purchases that need to be done in a timeframe that a traditional bank cannot meet (for example, a foreclosure auction). While a hard money lender can often fund the purchase within a week, a bank may take 2 or 3 months or longer.
- To obtain a fast cash-out refinancing using an already owned property as collateral.
- To quickly refinance another mortgage on the property that is coming due.
- To buy a property in the name of an LLC. A traditional bank often will not fund LLCs, so if a borrower would like to own a property that’s not in their personal name, a hard money loan is an option.