Real estate investors in New York City choose private lenders over banks because speed and flexibility matter in today’s market. Traditional banks move slowly, require extensive paperwork, and have rigid approval guidelines. Private lenders, like our team at West Forest Capital, move quickly, fund deals others would reject, and provide real solutions when timing is tight. In a competitive environment where opportunities close fast, private capital often becomes the smarter choice.
What is a Private Money Loan?
A private money loan, also known as a hard money loan, is a short-term real estate loan funded by private individuals or firms rather than traditional financial institutions. At West Forest Capital, we use the value of the property itself to determine loan eligibility, not your credit score or W-2 income. That means borrowers can move faster and secure deals that banks would never approve.
For example, if you’re buying a distressed property in Brooklyn that needs major renovations, a bank might deny the loan due to the property’s condition. We look at the asset, the opportunity, and your overall plan. This makes our financing ideal for fix-and-flip projects, cash-out refinances, or time-sensitive purchases.
Why Real Estate Investors in New York City Prefer Private Lenders Over Banks
New York City moves fast. Properties go under contract within a matter of days. Contractors are ready to start yesterday, and sellers want cash offers without contingencies. In this kind of environment, real estate investors do not have time to wait for a traditional bank loan.
Below is why private lending makes sense for NYC investors:
Faster Approval and Funding
Flexible Loan Criteria
Banks require a clean credit history, documented income, and low debt-to-income ratios. They rarely lend on properties that need repairs. At West Forest Capital, we focus on the property’s value and your plan. We work with investors who are self-employed, have credit challenges, or want to borrow against properties that need work.
Ideal for Fix-and-Flip Projects
Many of our clients use private loans for fix-and-flip projects in boroughs like Brooklyn and Queens. These properties often do not qualify for traditional financing due to their condition. Private lending fills that gap, allowing investors to purchase, renovate, and sell without the red tape.
Access to Higher Leverage
Speed Gives You a Competitive Edge
Sellers prefer buyers with fast and certain financing. In multiple-offer situations, a private loan can help you stand out. Instead of waiting for underwriting and appraisals, we provide direct answers and quick funding.
Real Estate Is About Timing
A delay in closing can kill a deal or even lead to penalties. Investors rely on our team because we understand that timing. We act quickly, speak clearly, and fund reliably. When the clock is ticking, private capital gives you an advantage.
Private lending is not just an alternative to traditional financing. In New York City, it is often the better choice. If you are buying distressed properties, doing a cash-out refinance, or need bridge financing, our team at West Forest Capital helps you move with confidence and speed.
Qualifications for a Private Money Loan
We make it easy for real estate investors to qualify for private money loans. Unlike traditional lenders, we move quickly and focus on the strength of the deal. Below is what you need to prepare:
Down Payment
Although private loans are asset-based, a down payment is still required. It acts as collateral and reflects your commitment to the investment property. The amount depends on the Loan-to-Value ratio. For example, if you plan to buy a $300,000 property and the LTV is 70 percent, you will need a $90,000 down payment. Depending on the asset, the range is typically 20 to 40 percent.
Appraisal
We order an appraisal to verify the current value of the property. This helps us structure the right loan based on equity and condition.
Insurance Coverage
An active insurance policy must name West Forest Capital as the loss payee and additional insured. For any renovation projects, we require builder’s risk coverage. This protects everyone involved while complying with state and federal laws.
Title Insurance
Credit Score
Private money lenders do not rely heavily on credit history. While we prefer a credit score of 600 or above, we fund deals with lower scores if the equity, investment strategy, and property value check out. We look at the full picture rather than making decisions based solely on credit.
Clear Exit Strategy
A defined exit strategy is important. Whether you plan to sell, refinance, or hold the property, knowing how you intend to repay the loan allows us to evaluate risk and approve the loan faster. Private lenders structure short-term financing with your real estate goals in mind.
Real estate investors who prepare these items in advance are in a stronger position to close quickly. In a market as competitive as New York City, that preparation can make all the difference.
Advantages of a Private Lender
- Faster approvals compared to traditional loans from bank lenders
- Funding available in days, not weeks
- Asset-based underwriting supports private business purpose loans
- Flexible terms for unique investment property deals
- Ideal for self-employed borrowers with limited income documentation
- Fewer restrictions than traditional loans from banks
- Real estate deals are approved based on property value
- Close quickly and stay competitive in fast-moving markets
- Avoid delays common with traditional bank underwriting
Which Types of Properties Can Be Funded with a Private Money Loan?
Private money lenders fund a wide range of real estate investments, especially those that fall outside the scope of traditional bank financing. These include:
- Fix-and-flip properties in need of renovation
- Multi-family buildings with upside potential
- Mixed-use and commercial buildings
- Vacant properties or land
- Investment property acquisitions that require fast closings
Whether you are acquiring a brownstone in Brooklyn or a small apartment building in the Bronx, we evaluate the deal based on value and potential.
Who Should Consider a Private Money Loa
Private loans are not just for investors with limited options. They are often the smartest choice for anyone working on a time-sensitive or nontraditional deal. If you need to close quickly, purchase a distressed property, or bypass the strict requirements of traditional lenders, private money loans offer a direct solution.
Hard money loans also benefit seasoned real estate investors looking to move quickly on undervalued properties. Many real estate investors use private money as part of their broader real estate investment strategies, especially when speed and flexibility matter more than long-term terms.
If your investment property does not meet the criteria for a bank loan—or you simply need a fast answer—private money lending can keep your project moving forward. At West Forest Capital, we focus on building long-term relationships by providing real solutions to real estate investing challenges.
States That We Finance Loans:
West Forest Capital lends in the following states:
- New York
- New Jersey
- Connecticut
- Massachusetts
- Rhode Island
- New Hampshire
- Pennsylvania
- Georgia
- Florida
West Forest Capital: Your Private Money Lender
West Forest Capital provides private money loans to real estate investors and others looking to finance non-owner-occupied real estate. We fund property types that include apartments, single-family, multi-family, commercial, industrial, and land.
We provide rehab funds or full construction costs as needed. As hard money lenders, we also provide fast closings, almost always less than 14 days, and often as quickly as 3 to 5 days. We’ve even previously closed a brand new loan in one day. Our loans are 1-2 years in duration, and extensions can be provided for up to 6 months or longer on a case-by-case basis.
