Hard Money Lender in Smithtown, NY

West Forest Capital serves as a hard money lender, offering private, asset-based loans to real estate investors. Rather than using your FICO score to determine eligibility, we focus on the asset itself, specifically, the property’s purchase price and after-repair value (ARV). This allows us to fund your real estate investment rapidly, often within five days or less, providing a faster alternative to the often lengthy approval process of traditional banks.

We specialize in providing fast financing for investors who need quick decisions, flexible terms, and funding for properties that may not qualify for traditional bank loans. Whether the property is missing a Certificate of Occupancy, requires significant repairs, or faces other challenges, we are here to help. Additionally, we assist clients rebuilding their credit profiles or in need of refinancing on short notice. As private money partners, we frequently fund auction purchases and quick-turnaround flips.

Since hard money loans are commercial in nature, we provide funding exclusively to LLCs. Setting up an LLC is quick and easy, even for individual investors. We also verify a clean title and assess the full scope of the project, including timelines for any rehabilitation.

For real estate investors who need quick, flexible financing, West Forest Capital provides the speed and support to ensure your deals stay on track.

Hard money loans provide real estate investors with a faster way to secure funding, offering quick access to capital without the long waits associated with traditional bank financing. While this speed comes with higher costs—interest rates ranging from 9% to 12% and closing fees of 1 to 3 points—hard money loans are ideal for time-sensitive investments. These loans are typically structured as short-term loans, usually for one to two years.

Our hard money loans typically consist of two components: (1) a purchase loan, which covers 70% to 85% of the property’s acquisition price, and (2) a rehab loan, which finances any necessary renovations. At West Forest Capital, we often finance the full rehab budget when substantial repairs are necessary to bring the property to its full value.

If no rehab work is needed, we exclude the rehab portion of the loan. For properties that require renovations, funds are disbursed in stages, based on the progress of the work. For example, on a $50,000 renovation, the borrower may receive $15,000 once the first part of the work is completed. The total loan, including both purchase and rehab, is generally capped at 65% of the after-repair value (ARV).

At West Forest Capital, our aim is to assist you in your real estate investment journey, ensuring each transaction is secure and financially sound. We specialize in offering hard money loans tailored to your specific needs, helping you achieve your investment objectives while ensuring that the integrity of your deals is maintained.

As commercial lenders, we provide funding only to LLCs, not individuals. If you haven’t yet set up an LLC, don’t worry as forming a single-member LLC is quick and simple, and we are here to help you through the entire process.

Our loan evaluation process is based on two key financial factors: the purchase price and the anticipated after-repair value (ARV) of the property. For the best return on your investment, the purchase price should be at or below market value. If renovation funds are needed, we will review your proposed budget and timeline carefully to make sure they align with the projected ARV.

Before we can move forward with closing, we require a clean and marketable title. Any liens, claims, or judgments on the property or your LLC must be cleared in advance. While we are flexible in many areas, a solid repayment plan and financial structure are essential.

We specialize in funding deals that have strong potential for profitability, those where the numbers support a positive outcome after factoring in all costs, including purchase, renovation, loan interest, and closing fees. Once we verify the financials, we can act quickly to help you close your deal with confidence.

In Smithtown, NY, hard money loans are utilized in the following scenarios:

• To purchase and renovate a property in Smithtown, NY that traditional banks would likely turn down due to its current state or the borrower’s financial profile, with the goal of reselling it for a profit. This is a typical “fix and flip” strategy that allows investors to capitalize on distressed properties.
• To acquire and renovate a property in Smithtown, NY that cannot be financed by traditional lenders, with plans to rent it out. Once the property is rented and producing income, it could potentially qualify for a conventional refinance at a more favorable rate.
• To secure ownership of a property in Smithtown, NY in situations where timing is crucial, such as a foreclosure auction or off-market deal. While banks may take months to approve a loan, hard money lenders can close deals quickly, often within a week.
• To access fast capital through a cash-out refinance by leveraging an existing Smithtown property as collateral.
• To refinance a mortgage or balloon payment due on a property in Smithtown, NY, providing quick and reliable financing without the delays of traditional banks.
• To fund substantial repairs or improvements on a Smithtown property that banks may hesitate to finance due to the property’s condition.
• To purchase a property in Smithtown, NY under an LLC, a structure that many banks are reluctant to finance but one that offers protection and flexibility for real estate investors.