Connecticut Hard Money Lender
Rates Starting at 10%
West Forest Capital is a Connecticut hard money lender, financing real estate investments up to $3 million. We have gained a reputation as the fastest hard money lender in Connecticut because we know how critical each day is in Connecticut’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
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 counties in Connecticut:
Recently Funded Hard Money Loans in Connecticut
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. 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!
- 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.
- 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 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 is a great option.
Why Choose A Connecticut Hard Money Lender
Having been a hard money lender in the tri-state area for years, we’ve gotten to know Connecticut pretty well — this fact helps our borrowers big time. Why? Because unlike national lenders or lenders only familiar with the NY/NJ market, we actually understand the value proposition in the various parts of CT and don’t just focus on one area of the state. If you’re looking for a hard money loan in Bridgeport or Greenwich, Stamford or Danbury, Hartford or New London, we lend in the entire state!
Financing your Connecticut Investment Property
While it lacks a major city, Connecticut is well distributed by population density, resulting in, relative to its size, a large area of economic activity. The dominant industry in CT is insurance representing a $16bn payroll, more than $3.5bn more than the next largest industry. However, bioscience, media and large scale manufacturing also play a key part in the state’s economy.
Some real estate stagnation has created significant opportunities to purchase properties below market value, and has also increased the margins associated with rehab projects.
Asset-backed Lender Focused on Customized Solutions
With our knowledge of the Connecticut fix and flip market, West Forest Capital is able to structure creative transactions that fit your hard money financing needs. We fund loans based on the value of the asset so in some cases we were even able to finance more than 100% of the purchase price and rehab amount.
West Forest Capital also offers the longest hard money loan available on the market (3 years), ideal for buy and hold investors.
Give us a call or apply for a loan today!
Frequently Asked Questions about Connecticut Hard Money Loans
What are hard money lenders?
How do hard money loans work?
Hard money loans are typically short-term funding arrangements where a borrower needs to secure financing fast in order to close a deal. A borrower approaches a hard money lender to secure a loan for purchasing a real estate investment property in a market that is highly competitive. This can be a residential or a commercial property and when there are many parties interested, time is of the essence.
The borrower can get approved and have the loan processed in a matter of days as opposed to working with a conventional bank or other financing institution where it can take weeks or possibly months for the loan to be approved, processed, and financed.
The property being purchased is used to secure the loan based on the value of that property and, in most cases, the terms for repayment are often much shorter than a conventional loan. Many hard money loans come with or without prepayment penalties, depending on the lender, but in most cases the loans can be repaid earlier than the terms outlined in the contract.
What do hard money lenders look for?
What is hard money used for?
A hard money loan is typically used for real estate transactions on residential or commercial properties and sometimes in situations where financing is needed for a temporary period until another real estate investor or another form of financing is brought in to replace that loan.
Real estate developers will use Connecticut hard money lenders to secure construction loans to fund construction projects and real estate investors often turn to private lenders to finance the purchase of a property that needs extensive renovation or repairs.
