Hard Money Lenders Washington, DC
Rates Starting at 10%
West Forest Capital is a trusted hard money lender in Washington, DC, offering real estate financing up to $3 million. Known for being one of the fastest lenders in the region, we understand the importance of speed in Washington, DC’s competitive real estate market. With our streamlined lending process, you can access the capital you need quickly, whether you’re focused on residential properties or commercial investments, ensuring you stay ahead of the curve.
- We are a direct lender, not a broker
- Same day pre-approval
- Funding in 3-5 days (1 day possible)
- Loan amounts up to $5 million
The Trust We've Earned
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 |
Areas Covered
West Forest Capital lends in the following locations in Washington, DC:
- Capitol Hill
- Georgetown
- Dupont Circle
- Adams Morgan
- Logan Circle
- Foggy Bottom
- Shaw
- Columbia Heights
- U Street Corridor
Why Use a Hard Money Loan
If you need funding fast. Traditional banks take time, but West Forest Capital ensures same-day approval for your hard money loan. With funding within 3-5 days, we also offer emergency funding in just one day when necessary.
If the property isn’t stabilized. Banks reject loans for properties that require repairs, lack a Certificate of Occupancy (CO), or have an unclear rental history. These properties are often seen as too risky by conventional lenders. At West Forest Capital, we specialize in providing financing for such properties, enabling you to proceed with your investments without the traditional obstacles.
If you have poor credit. We recognize that your FICO score doesn’t always reflect your investment potential. At West Forest Capital, we place greater emphasis on the value and potential of the property when evaluating loan eligibility, giving you the ability to secure financing even with poor credit, regardless of your FICO score.
If you don’t want to take a loan in your personal name. Banks generally require loans to be in the borrower’s name, but for many real estate investors, this is not ideal. If you want to protect your personal finances or have too many properties to qualify personally, using an LLC to secure a hard money loan provides you with more flexibility and protection.
Why Choose A Washington, DC Hard Money Lender
Our goal is simple: to be the best hard money lender in Washington, DC. As one of the most dynamic real estate markets in the country, Washington, DC offers a wealth of investment opportunities, from historic properties to modern developments. With an in-depth understanding of local market conditions, including property valuations and urban development trends, we are the go-to lender for investors in DC.
In Washington, DC, we provide hard money financing in neighborhoods like Capitol Hill, Georgetown, and Adams Morgan, where both residential and commercial properties are highly sought after. Our expertise extends to commercial property financing in areas like Dupont Circle and Foggy Bottom, where mixed-use developments are thriving. We also fund fix-and-flip projects in neighborhoods like Shaw, Petworth, and Columbia Heights, where property values are on the rise and demand for renovated homes is strong.
If you are looking for hard money loans in nearby cities like Arlington or Alexandria, we can assist. Additionally, we offer financing throughout the DC metropolitan area, including cities like Bethesda, Silver Spring, and Takoma Park, which offer growing real estate markets and excellent returns for investors.
Financing your Washington, DC Investment Property
Washington, DC, has long been a leader in economic growth, with a booming tech sector, a robust job market, and a rapidly expanding population. As the nation’s capital continues to grow, the demand for both residential and commercial properties has surged, making Washington, DC, one of the most lucrative real estate markets in the country. The city offers a wealth of opportunities for real estate investors, from high-end residential properties to prime commercial spaces.
Washington, DC, offers a variety of investment opportunities, whether you’re interested in purchasing distressed properties in up-and-coming neighborhoods, pursuing value-add projects in commercial districts, or investing in stabilized properties in highly sought-after locations. From fix-and-flip properties in neighborhoods like Shaw and Columbia Heights to large-scale commercial developments along K Street and 14th Street, West Forest Capital is here to provide the financing you need to secure profitable real estate investments in the heart of the nation’s capital.
Asset-backed Lender Focused on Customized Solutions
At West Forest Capital, we offer specialized financing for residential and commercial real estate investments in Washington, DC, with a focus on providing flexible and creative solutions. We base our loans on the value of the property, and in select cases, we can provide up to 100% financing for both the purchase price and rehab costs, as long as additional collateral is available.
We also provide the longest hard money loan terms in Washington, DC, with terms available for up to 3 years. This extended term is perfect for investors who need additional time to stabilize or improve a property, offering a bridge between short-term hard money and long-term financing solutions.
Contact us today to explore your financing options for real estate investments in Washington, DC.
Hard Money Lender Washington, DC: Frequently Asked Questions
What are hard money lenders?
Hard money lenders are private financial institutions that offer asset-based loans, operating outside the traditional banking system. Unlike banks, which require extensive documentation and focus on FICO scores, hard money lenders evaluate the property’s value to determine loan eligibility, resulting in a faster approval and funding process. This allows loans to be closed in as little as one week, whereas banks may take several months to finalize a loan.
In Washington, DC, hard money loans are often used by real estate investors seeking to purchase properties at foreclosure auctions where quick closing is essential. These lenders are also ideal for financing properties that do not meet traditional bank requirements, such as those requiring significant repairs or lacking a Certificate of Occupancy. Hard money lenders are also a great option for investors with low credit scores, as approval is not primarily based on FICO scores.
As a leading hard money lender in Washington, DC, we are dedicated to providing fast, flexible financing solutions to help you succeed in this competitive market.
How Do Hard Money Loans Work?
In Washington, DC, hard money loans provide a fast and flexible alternative to traditional bank mortgages. While these loans come with higher interest rates, typically ranging from 10% to 12%, and an additional 2 points due at closing, they are ideal for investors looking to move quickly on opportunities. These loans typically last 1 to 2 years, which is perfect for short-term projects that need to be completed in a timely manner. The loan structure consists of two main components:
- Purchase funds, which usually cover 70% to 85% of the purchase price.
- Rehab funds, which can cover up to 100% of renovation costs, providing the necessary capital for repairs and improvements.
Hard money loan funds for rehab projects are provided in arrears, meaning the borrower receives payments after certain work milestones are met. For instance, if $50,000 is allocated for rehab, the borrower completes $15,000 of work before requesting $15,000 in funds, continuing until the rehab is fully finished. These loans are commonly used for bridge loans, fix-and-flip projects, and commercial real estate ventures, with the total loan amount, covering both purchase price and rehab funds which are limited to 65% of the after-repair value (ARV). In Washington, DC, where real estate opportunities are fast-moving, hard money loans provide quick access to capital, allowing investors to secure deals and renovations swiftly.
What do hard money lenders look for?
Hard money loans are commercial loans and are issued to LLCs rather than individuals. Forming an LLC is a simple and quick process, allowing real estate investors to set up a single-member LLC to move forward with their projects. This structure facilitates a faster loan application and approval process compared to traditional banks.
Hard money lenders carefully review both the purchase price and the after-repair value (ARV) of a property to assess the investment’s viability. Purchasing at or below market value is essential to securing a loan, ensuring the lender’s investment is protected. If the loan includes rehab funds, the lender will monitor the renovation’s progress to ensure it follows the agreed-upon schedule and remains within budget. A clean title is essential, meaning that any existing liens or judgments on the property or LLC must be cleared before disbursement.
For hard money lenders, ensuring the borrower’s success is vital, as their repayment depends on it. Lenders confirm that the ARV is high enough to cover all costs, including purchase, rehab, interest, and fees, while still leaving room for the borrower to make a profit.
What is hard money used for?
Hard money lending is frequently used by Washington, DC real estate investors in the following scenarios:
- To acquire and repair a property (including rental properties) that banks won’t finance, either due to the property’s condition or the borrower’s credit, and then resell it to a retail buyer. This strategy, known as “fix and flip,” allows investors to take advantage of distressed properties and generate profits by renovating and reselling.
- To purchase and renovate a property that a bank will not lend on, then rent it out. After stabilization, it may be refinanced with a traditional lender at a lower rate, providing the investor with better long-term financing options and improved cash flow.
- To fund real estate purchases that need to be completed in a short time frame, such as foreclosure auctions. While banks may take months to process the deal, hard money lenders can often close within a week, allowing investors to act quickly.
- To access a fast cash-out refinance using an existing property as collateral.
- To refinance an approaching mortgage on a property that is coming due.