Fix and Flip Loans Massachusetts
Rates Starting at 10%
West Forest Capital is a Massachusetts fix and flip lender, financing real estate investments up to $5 million. We have gained a reputation as the fastest fix and flip lender in Massachusetts because we know how critical each day is in Massachusetts’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 Massachusetts:
- Barnstable County
- Berkshire County
- Bristol County
- Dukes County
- Essex County
- Franklin County
- Hampden County
- Hampshire County
- Middlesex County
- Nantucket County
- Norfolk County
- Plymouth County
- Suffolk County
- Worcester County
Recently Funded Fix and Flip Loans in Massachusetts
Medway, MA
- Location: Medway, MA
- Original Purchase: $225,000
- Current Value: $290,000
- Loan Amount: $200,000
- Exit Strategy: Refinance
- Investor Capital: $25,000
- Equity Created: $65,000
- Investor Return on Capital: 160%
This Massachusetts hard money loan was a cash-out refi, the proceeds of which were used by our client to build-out ancillary commercial space that is owned by our client in the same building. The subject property, a residential condo, was purchased for $225,000 and appreciated to $290,000. Utilizing a hard money loan in Medway, MA we were able to provide a cash-out $200,000 loan at 78% LTV by including the commercial space as additional collateral. The borrower was able to pull the vast majority of his investment out of the property, leaving only $25,000 in the deal, and generating a 160% return. Our loan was later refinanced by a traditional bank.
Dedham, MA
- Location: Dedham, MA
- Purchase Price: $412,000
- Rehab Budget: $47,000
- Loan Amount: $288,400 at Closing + $47,000 Rehab = $335,400
- ARV: $565,000
- Exit Strategy: Sale
- Investor Capital: $123,600
- Equity Created: $106,000
- Investor Return on Capital: 86%
This Boston area hard money loan was used to fix and flip a single-family house. The home was purchased after several rounds of negotiations and needed a new kitchen, bathrooms, and various cosmetic touch-ups. We provided 70% of the purchase price and 100% of the rehab costs. Our client, who had completed two other flips in the previous three years, was able to move through the project quickly. Within 4 months the entire rehab had been completed and the property was listed for sale. Demand was strong, and the property went into contact within three weeks of the listing date. Two months later, the property was sold and our loan repaid.
Boston, MA
- Location: Boston, MA
- Purchase Price: $1,370,000
- Rehab Budget: Not required
- Loan Amount: $890,500
- Exit Strategy: Refinance
- Investor Capital: $479,500
- Equity Created: $150,000
- Investor Return on Capital: 31.3%
This hard money loan was made to a foreign national purchasing a two-bedroom condo in the Back Bay neighborhood. With a light credit history and no US income, our client was not eligible for a traditional bank loan for this investment property. However, the client was able to put down a 35% down payment, and we utilized a Boston hard money loan to fund the remaining 65%. This loan also included a 6-month interest reserve. The property needed no rehab and was quickly rented out. After demonstrating 9 months of rental history, our client was able to refinance our loan into a long-term fixed DSCR loan.
Why Use a Fix and Flip Loan
- If You Need Rapid Funding: Unlike traditional banks that may take months to process your loan application, West Forest Capital offers same-day approval for fix and flip loans, with funding available in just 3-5 days. In urgent cases, we can even provide funding within 24 hours.
- Because the Property Requires Renovation: Traditional banks often shy away from financing properties that need rehab, lack a Certificate of Occupancy (CO), or have other issues. West Forest Capital specializes in funding fix and flip loans for properties that do not meet standard banking criteria.
- If You Have Less-Than-Perfect Credit: At West Forest Capital, we understand that situations come up in life that might impact credit. That’s why we focus on the property’s value rather than your credit score when underwriting the loan.
- It’s Investment Real Estate: Typically, banks require loans to be made to individuals. But you are purchasing the fix and flip as an investment and it should be treated as such by being in an LLC. This way, you get all of the benefits of owning an LLC, and the loan is structured as a business-purpose loan to your LLC.
Why Choose Us For Your MA Fix and Flip Loans
We love helping real estate investors who are doing fix and flip projects in Massachusetts, and we take pride in being a local Massachusetts fix and flip lender. We understand the permit requirements and building regulations in Boston, Lowell, and New Bedford. We can also review your construction budget, provide feedback, and help structure your fix and flip loan in locations such as Lawrence, Worcester, and Cambridge. Additionally, we know many of the contractors in Quincy and Springfield, have experience dealing with the city inspectors in Brockton, and have funded fix and flip homes in Lynn.
Financing Your Massachusetts Investment Property
Massachusetts is an excellent market to flip homes. The demand is there, and the housing stock is also available to be improved. Furthermore, the spread between the purchase price and rehab cost is attractive.
At the same time, this environment creates a competitive market and many real estate investors are looking to do fix and flip projects in Massachusetts. Our team at West Forest Capital is ready to not only help you stand out to the seller by committing cash-equivalent capital but will also make sure your fix and flip goes smoothly.
Asset-backed Lender Focused on Customized Solutions
We are guided by the current “as-is” market value, the renovation costs, and the “after-repaired value.” We are easy to work with and typically provide a large amount of the purchase price and 100% of the rehab costs. We are also flexible: if you do the construction out of order from your original schedule, or have a budget overrun, we will work with you to make sure your fix and flip in Massachusetts is successful
West Forest Capital also offers the longest fix and flip loan available on the market (2 years), which is a great option for those projects that may take a bit more time.
Call us today and let’s talk about your loan scenario. Most likely, we will be able to fund you.
Frequently Asked Questions
What are fix and flip lenders?
West Forest Capital is a leading fix and flip lender, focusing on asset-based loans that prioritize property value over credit history. Unlike traditional banks, we offer swift and reliable funding, with loan approvals and funds available within days. Our efficient system is perfect for investors working on properties that need rehabilitation or lack a Certificate of Occupancy.
How do fix and flip loans work?
Getting a fix and flip loan with West Forest Capital is easy and straightforward. Interest rates range from 9 to 12%, with additional closing fees. Our loans usually cover up to 85% of the property’s purchase price and 100% of the renovation costs, paid out in stages as the work proceeds. Intended for short-term use, our loans are designed to ensure the total amount financed does not exceed 65% of the property’s after-repair value (ARV).
What do fix and flip lenders look for?
We are a private money lender offering loans mainly to LLCs rather than individuals. Our process includes evaluating both the purchase price and the after-repair value (ARV) to verify the investment’s potential. We prioritize critical elements such as buying properties at or below market value, following a predefined rehab schedule, and ensuring a clean title. Our aim is to support your investment success and facilitate successful loan repayment.
What is a fix and flip loan used for?
West Forest Capital’s fix and flip loans are designed for real estate investors when traditional banks are reluctant. These loans offer the speed and flexibility needed for purchasing and renovating properties to resell or rent, and for quick auction buys. They are also perfect for cash-out refinancing, refinancing existing mortgages, and buying properties under an LLC, options that conventional banks usually don’t provide.
What should I consider before applying for a fix and flip loan for a fix and flip?
Before applying for a fix and flip loan, evaluate the property’s profit potential and have a strong renovation plan. West Forest Capital, as your private lender, assesses the feasibility and profitability of your project. To get the most out of financing with flip lenders, it’s important to understand the loan terms and how they align with your project’s timeline and budget.
How quickly can I access funds once approved for a fix and flip loan?
Following approval, West Forest Capital’s rapid funding process stands out. Funds for your fix and flip project are typically available promptly, enabling you to purchase and renovate your property without delays. This efficient process contributes to our status as a preferred flip lender in the competitive real estate market.
