Hard Money Lenders NYC
Rates Starting at 10%
West Forest Capital is a New York hard money lender, financing real estate investments up to $3 million. We have gained a reputation as the fastest hard money lender in New York because we know how critical each day is in New York’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
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 |
Counties Covered
West Forest Capital lends in the following counties in New York:
Recently Funded Hard Money Loans
Jersey City, NJ
Newark, NJ
Elizabeth, NJ
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 an NYC Hard Money Lender
One of our main locations is in NYC! We take pride in being a local NYC hard money lender and helping to finance improvements in the community. Brooklyn and Queens have seen strong price appreciation and are consistent targets for real estate investors. Areas in the Bronx and Staten Island, with close proximity to Manhattan, have also been noticed as potential pockets of value. Investing in NYC can be lucrative but comes with many potential pitfalls around regulations and rental laws. We are happy to provide advice based on our experience of hard money lending in NYC.
Financing your NYC Investment Property
The real estate market in the NYC area has been consistently strong, showing historic appreciation, and always bounces back from adversities. The sheer depth of it allows investors potential for significant profits in a wide variety of projects.
There are different NYC hard money lenders. Choose the one that knows the local area and can help recommend realtors and contractors or assess deals. We are a direct lending partnership — not a broker — so call us to discuss your deal directly with the decision makers 212-537-5833.
Asset-backed Lender Focused on Customized Solutions
With our knowledge of the New York 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!
Hard Money Lender New York: Frequently Asked Questions
What are Hard Money Lenders?
Hard money lenders are non-bank, asset-based lenders. While both banks and hard money lenders make mortgage loans, the requirements and lending criteria often vary significantly from traditional banks. Hard money lenders focus more on the underlying property rather than the borrower. The underwriting process is considerably shorter with a hard money lender, and a loan can often be funded within a week (as opposed to 2 to 3 months or longer with a traditional bank).
Real estate investors, especially those buying foreclosures at auctions, often use private money loans from a hard money lender to fund the purchase because the terms of the auction require an expedited closing process. Hard money lenders also fund properties that traditional banks won’t finance, such as those without a Certificate of Occupancy (CO). Additionally, a hard money lender is a great option for someone with poor credit or rebuilding their credit, as a low FICO score won’t prevent you from securing a loan. These lenders also provide loans to refinance existing lenders or as a way to cash out on a property.
How Do Hard Money Loans Work?
Because it’s significantly easier and faster to obtain a hard money loan, such as a New York hard money loan, the interest rates are higher than a traditional bank mortgage. Interest rates typically range from 10 to 12%, with an additional 2 points charged at closing. The loan term is usually 1 or 2 years and can come in two parts:
- Funds for the purchase, typically cover 70 to 85% of the purchase price.
- Funds for rehab, if necessary, which may cover up to 100% of the renovation costs.
If rehab is required, the funds are distributed in arrears, after portions of the work are completed. For example, if $50,000 is allocated for rehab, the borrower might complete $15,000 worth of work before requesting $15,000 in funding from the lender, continuing this process until the rehab is completed.
Hard money loans are commonly used as bridge loans, flip loans, and commercial real estate loans. They are structured to ensure the total loan amount (purchase and rehab funds) doesn’t exceed 65% of the property’s after-repair-value (ARV). These loans are frequently used for investment properties, particularly in competitive markets like New York City, where quick access to funding is essential for closing real estate deals.
What do hard money lenders look for?
Because a hard money loan is considered a commercial loan, a hard money lender will not lend to individuals, and will only lend to LLCs. But don’t worry if you don’t have an LLC, they are very easy to create and can have only one member (you).
Hard money lenders analyze both the purchase price as well as ARV to make sure they can get paid back on loans they make. A property that is bought below or at market is an important aspect of obtaining a loan. If the borrower is also taking out a loan for rehab purposes, a hard money lender will want to make sure that the repairs are being done according to the repair schedule and on time. A clean title is also essential when obtaining a hard money loan. Any judgments or liens on the property or LLC that is taking out the loan (remember, the loan must be made to an LLC), will have to be cleared before the loan being disbursed.
It’s important to a hard money lender that their borrower is entering into an investment project that will be profitable for the borrower. In other words, the hard money lender wants you to make money on your real estate investment so that they can get paid back on their loan. The lender will ensure that there is enough “spread” in the deal, which means that the ARV will cover the purchase price, rehab costs, interest on the loan, closing costs, and any other associated fees with sufficient room left over to make the investment profitable for their client.
What is hard money used for?
A hard money loan is most often used in the following scenarios:
- To purchase and repair a property that a traditional bank will not lend on (either because of the property itself or because of the borrower’s credit), which will then be sold to a retail buyer. This is commonly called “fix and flip.”
- To purchase and repair a property that a bank will not lend on, which will then be rented out. Once rented, the property will be considered “stabilized,” and may be refinanced with a traditional bank at a lower rate.
- To fund real estate purchases that need to be done in a timeframe that a traditional bank cannot meet (for example, a foreclosure auction). While a hard money lender can often fund the purchase within a week, a bank may take 2 or 3 months or longer.
- To obtain a fast cash-out refinancing using an already-owned property as collateral.
- To quickly refinance another mortgage on the property that is coming due.
- To buy out a partner or family member. Hard Money loans are a great option to buyout a business partner and then refinance into longer term debt upon gaining full ownership of the property.