Hard Money Lender in Southold, NY

West Forest Capital functions as a hard money lender, offering private, asset-based loans designed for real estate investors. We assess each deal based on the value of the property itself, focusing on the purchase price and projected after-repair value (ARV), rather than relying on your FICO score. This approach allows us to fund your investment quickly, often in five days or less, which is much faster than traditional banks, which can take months to process loans.

We are the lending partner of choice for investors needing fast approvals, flexible loan terms, and funding for properties that banks might decline. This includes properties lacking a Certificate of Occupancy, needing substantial repairs, or facing other complications. Additionally, we assist clients who are rebuilding their credit profiles or require refinancing under tight timelines. As private money partners, we often fund auction purchases and fast-turnaround flips.

Because our hard money loans are commercial in nature, we only lend to LLCs. Setting up an LLC is quick and easy, even for individual investors. We also ensure that the property title is clear and assess the full project scope, including rehab timelines if applicable.

For real estate investors in need of speed and flexibility, West Forest Capital is the partner you need to keep your deals on track and moving forward.

Hard money loans are designed to help real estate investors quickly access the capital they need for projects, bypassing the slow approval processes of traditional banks. These loans come with higher interest rates, typically ranging from 9% to 12%, and closing fees between 1 to 3 points, but offer quick funding—often in five days or less. Hard money loans are short-term, typically lasting one to two years, making them perfect for investors with time-sensitive projects.

Hard money loans consist of two main components: (1) a purchase loan, which usually covers 70% to 85% of the property’s acquisition cost, and (2) a rehab loan to cover the costs of necessary renovations. At West Forest Capital, we often fund the entire rehab budget for properties that require substantial work.

If no renovations are required, we exclude the rehab portion from the loan. When renovations are needed, funds are disbursed in stages, typically after parts of the work are completed. For example, on a $50,000 renovation, the borrower may receive $15,000 after completing part of the work, with additional disbursements made as work progresses. The total loan, including both purchase and rehab, is capped at 65% of the after-repair value (ARV).

At West Forest Capital, we are committed to helping you navigate your real estate investment journey, ensuring each transaction is financially sound and secure. We provide hard money loans that are specifically tailored to your needs, helping you achieve your investment goals while maintaining the integrity of your deal every step of the way.

As commercial lenders, we provide funding exclusively to LLCs, not individual borrowers. If you haven’t yet set up an LLC, don’t worry as it’s a simple process to create a single-member LLC, and we are happy to assist you through the entire process.

Our loan evaluation is based on two essential financial factors: the property’s purchase price and its anticipated after-repair value (ARV). To ensure maximum profitability, the purchase price should ideally be at or below market value. When you request renovation funding, we review your proposed repair budget and timeline to make sure it aligns with your projected ARV.

Before we can proceed to closing, we require a clean and marketable title. Any liens, claims, or judgments affecting the property or your LLC must be resolved beforehand. While we offer flexibility in many areas, we do require a well-defined repayment plan and a solid financial structure.

We specialize in funding deals that have strong potential, those where the numbers support a profitable outcome after accounting for all costs, including the purchase price, renovation expenses, loan interest, and closing fees. Once we verify the financial details, we move quickly to help you close with confidence.

When it comes to properties in Southold, NY, hard money loans are often employed in the following scenarios:

• To purchase and renovate a property in Southold, NY that a traditional bank would likely decline due to its current state or the borrower’s financial profile, with the goal of selling it for a profit. This is a popular “fix and flip” strategy that allows investors to transform undervalued properties into high-value assets.
• To acquire and renovate a property in Southold, NY that is not eligible for traditional financing, with the goal of renting it out. Once rented, the property may qualify for a conventional refinance, providing long-term financial benefits.
• To secure ownership of a property in Southold, NY when time is critical, such as purchasing a foreclosure or off-market property. While banks can take months to approve such transactions, hard money lenders can typically close the deal within a week.
• To access fast capital through a cash-out refinance using an existing property in Southold, NY as collateral.
• To refinance a mortgage or balloon payment coming due on a property in Southold, NY, providing a quick and flexible alternative to the slower process of traditional banks.
• To fund necessary repairs or renovations on a Southold property that traditional lenders may be unwilling to finance due to the property’s condition.
• To purchase a property in Southold, NY under an LLC, a scenario where banks may not approve financing but one that offers more flexibility and protection for real estate investors.