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West Forest Capital

Hard Money Lender Bronx

Interest Rates Starting at 10%

West Forest Capital is a Bronx, New York hard money lender, financing real estate investments up to $5 million. We have gained a reputation as the fastest hard money lender in the Bronx because we know how critical each day is in the Bronx’s competitive real estate market.

  • 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

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(Investment Properties Only)

Property Types

Lending Parameters

Loan Size$100,000 to $5,000,000
LTCUp to 80% of purchase price
Rehab Funding 100%
LTVUp to 70% of the ARV
TermStandard is 12 months. 24-36 months is available
LienFirst lien; second lien as additional collateral only
Interest Rate 10%–12.5%
Points1.5–2% of the loan amount

Cities Covered

West Forest Capital lends in the following areas in Bronx County:

    • Riverdale
    • Pelham Bay
    • Fordham
    • Hunts Point
    • Throgs Neck
    • Morris Park
    • Mott Haven
    • Kingsbridge
    • Belmont
    • Wakefield
    • University Heights
    • Concourse
    • Highbridge
    • Parkchester
    • Soundview

Recently Funded Hard Money Loans

Naples, FL

We made a Florida hard money loan to a client who purchased a three-bedroom, three-bathroom condo in a sought after building in Naples, Florida.  Our client’s strategy was to generate returns by using the property for seasonal and short-term Airbnb rentals, which would generate higher ROIs vs. an annual lease.  We provided a hard money loan of 71.8% of the purchase price, and our client self-funded light rehab, mostly cosmetic in nature.  Our client repaid our loan with a paydown generated from the sale of another property.  At the time of paydown, the property experienced appreciation of nearly $63k.

New York, NY

This New York hard money loan was made to a client who owned an existing building in Manhattan.  The building consists of six full floor condominiums, and our loan was collateralized by one of the units.  At the time of our loan, there was no existing debt on the building.  Our loan consisted of two parts: $1.1m at closing for general renovation and upgrading of the building (including replacing the elevator) and $200k specifically used to rehab the subject property.  After the extensive upgrades were completed, the unit was put on the market and sold for $4.6m, an increase of $650k from the original appraisal.  Our loan was paid off with a portion of the proceeds from the sale.

Miami, FL

Our client utilized a hard money loan in Miami, Florida to fix and flip this property in Surfside.  We funded 72.5% of the purchase price, and 100% of the $110,000 rehab budget.  Our client spent approximately 5 months renovating the house, and thereafter, the property sold within a week of being on the market.  The closing took place approximately a month later, and although the loan was only outstanding for 6 months, there was no prepayment penalty assessed.  Our loan was paid back with a portion of the proceeds from the sale, netting our client north of $200k after accounting for all holding and closing costs. 

Why Use a Hard Money Loan

  1. 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 and funding within 3-5 days. In an emergency situation, we can even fund in 1 day!
  2. 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 such as West Forest Capital will be able to fund the property when a bank can’t.
  3. 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.
  4. If you don’t want to take a loan in your personal name. A traditional bank is likely to require that a property is owned directly by an individual they are making the loan. 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 is a great option.
NYC hard money lender
NYC hard money loans

Why Choose a Bronx Hard Money Lender

We are thoroughly familiar with the Bronx and have made many loans in the area! Lending on various situations – money for purchases, renovations, divorces, partnership buy-outs, back-taxes – is our specialty. The Bronx is also a great choice for traditional real estate investors due to its desirable location and more affordable housing. Some areas in the Bronx have developed into niche neighborhoods with a suburban feel, and we have seen substantial demand for fix and flip loans. To invest in Bronx County one must be very careful in understanding rental regulations, building code, and potential building violations. We are happy to provide advice based on our experience of hard money lending in the Bronx.
NYC hard money loans

Financing your Bronx County Investment Property

The Bronx County has consistently attracted many real estate investors over the years, and provides for strong cashflow with low vacancies. The Bronx is very economically diverse, and the same can be said for the types of real estate investments – residential, commercial, industrial, etc.

We are committed to the Bronx market. We understand the need for speed, and lend from a common sense standpoint. We will give you a definitive yes no lending decision within the same day as when you reach out to us (often, we can give this instantly). And if our answer is a no, we will give you alternative options to make the deal work. Call us today and let’s finance your Bronx investment real estate property!

Asset-backed Lender

Asset-backed Lender Focused on Customized Solutions

With our knowledge of the Bronx real estate market, West Forest Capital is able to structure hard money lending transactions that fit your financing needs. We lend based on the value of the asset and the overall scenario; accordingly, and although not typical, there have been cases where we have financed 100% of the purchase price and rehab costs (this has typically involved a purchase at a substantial discount to market).

West Forest Capital also offers the longest hard money loan available (3 years), ideal for investors that need additional time to stabilize the property. Give us a call or apply for a loan today!

FAQs

Hard money lenders, distinct from traditional banks, operate as non-bank, asset-based lending institutions. While both banks and hard money lenders extend mortgage loans, there are notable differences in their requirements and lending criteria. Hard money lenders in Bronx County prioritize the value of the underlying property over the borrower’s qualifications, resulting in a significantly shorter underwriting process. Loans from hard money lenders are often funded within a week, contrasting with the lengthier timelines typical of traditional banks, which can stretch to 2-3 months or more.

Given their expedited processes, hard money lenders are preferred by real estate investors, especially those acquiring foreclosures at auctions where rapid closings are required by auction terms. Moreover, hard money lenders finance properties that traditional banks may decline, such as those lacking a Certificate of Occupancy (CO). Additionally, hard money lending offers a viable solution for individuals with poor credit or those aiming to rebuild their credit, as a low FICO score does not serve as a barrier to obtaining a loan.

Furthermore, hard money lenders provide versatile lending options beyond property acquisitions. These include refinancing existing loans and accessing cash from property equity, making them a valuable resource for investors seeking to capitalize on their real estate assets.

It’s essential to understand that hard money lenders exclusively provide financing for investment real estate and do not extend mortgages for residential purposes. Properties financed by hard money lenders cannot be used as primary residences.

Due to the streamlined application process, hard money loans are obtained more quickly and easily compared to traditional bank mortgages. However, this convenience comes with a higher interest rate, typically ranging between 10 and 12%. Additionally, borrowers can expect to pay between 1 and 3 points at closing.

Typically lasting 1 or 2 years, the term of a hard money loan is relatively short. These loans are generally divided into two parts: the first part finances the property purchase, often covering 65-80% of the purchase price, while the second part provides funding for any necessary property rehabilitation. Hard money lenders frequently finance up to 100% of the rehab costs. If no rehabilitation is needed, it will not be included in the loan.

For properties requiring rehabilitation, funds are disbursed incrementally, after completion of each portion of the work. For instance, if a total of $50,000 is required for rehab, the borrower may request $15,000 after completing the initial phase of work, with subsequent disbursements following a similar pattern. Hard money loans are typically structured to ensure that the total loan amount, covering both purchase and rehab funds, does not exceed 65% of the property’s after-repair-value (ARV).

As a hard money loan is categorized as a commercial loan, hard money lenders extend their financing exclusively to LLCs and not to individuals. However, forming an LLC is a straightforward process, and you need not fret if you don’t have one already. An LLC can be easily created and may even have just one member, which can be yourself.

Hard money lenders in Bronx County meticulously evaluate both the purchase price and the After-Repair Value (ARV) to ensure the viability of their loans. Acquiring a property below or at market value is a crucial factor in loan approval. Additionally, if the borrower seeks financing for rehabilitation, the lender will verify that repairs adhere to the predetermined schedule and are completed promptly. A clear title is another fundamental requirement for obtaining a hard money loan. Any existing judgments or liens on the property or the LLC receiving the loan (as loans must be made to an LLC) must be resolved before loan disbursement.

Hard money lenders prioritize the profitability of their borrowers’ investments or transactions. Essentially, they aim for their borrowers to profit from their real estate ventures so that they can repay the loan. To achieve this, the lender ensures that there is sufficient “spread” in the deal. This means that the After-Repair Value (ARV) should cover not only the purchase price and rehabilitation costs but also the loan interest, closing expenses, and any other associated fees, with ample room left for the investment to be profitable for their clients.

A hard money loan in the Bronx is most often used in the following scenarios:

  • Engage in the acquisition and renovation of a property deemed unsuitable for traditional bank financing (due to either the property’s condition or the borrower’s credit profile), with the intention of selling it to a retail buyer. This strategy is commonly referred to as “fix and flip.”
  • Acquire and renovate a property that traditional banks are hesitant to finance, with the intention of renting it out. Once the property is leased and deemed “stabilized,” it may qualify for refinancing with a traditional bank at a more favorable interest rate.
  • Hard money loans are often sought to finance real estate acquisitions with time-sensitive requirements that traditional banks cannot accommodate, such as foreclosure auctions. While hard money lenders typically fund purchases within a week, banks may take 2 or 3 months or even longer.
  • Acquire fast cash-out refinancing by leveraging an existing property as collateral.
  • Quickly refinance an existing mortgage on a property nearing its maturity date.
  • Purchase a property under the name of an LLC. Traditional banks typically do not finance LLCs, making a hard money loan a viable option for borrowers aiming to own properties not in their personal names.

We Value our Broker Relationships

West Forest Capital is the fastest Hard Money Lender in New York

New York Hard Money Lender

We can fund hard money loans in 3–5 days

If you are looking for a New York hard money lender, give us a call

Submit a loan request

A New York direct lender you can rely on

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