Fix and Flip Loans Newton
Rates Starting at 10%
West Forest Capital is a Newton 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 Newton because we know how critical each day is in Newton’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 |
Villages Covered
West Forest Capital lends in the following villages in Newton:
- Auburndale
- Chestnut Hill
- Newton Centre
- Newton Corner
- Newton Highlands
- Newton Lower Falls
- Newton Upper Falls
- Newtonville
- Nonantum
- Oak Hill
- Thompsonville
- Waban
- West Newton
Recently Funded Fix and Flip Loans
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 Newton, and we take pride in being a local Newton fix and flip lender. We understand the permit requirements and building regulations in the various areas of the city, and surrounding towns. We can also review your construction budget, provide feedback, and help structure your fix and flip loan in locations such as Newton Centre, Nonantum, and Waban. Additionally, we know many of the contractors, have experience dealing with the city inspectors, and have relationships with various realtors in the city of Newton, MA and surrounding areas.
Financing Your Newton Investment Property
Newton is an excellent market to flip homes. The demand is sky high, and the housing stock – although rapidly improved – is still on the older side. Furthermore, the spread between the purchase price and rehab cost is still 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 Newton, MA. Our team at West Forest Capital is ready to not only help you stand out to the seller by committing cash-equivalent capital (and all rehab funds) 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 Newton 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. For example, we’ve seen this tenor utilized on larger homes or townhouse developments.
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 stands out as a premier lender for fix and flip projects, offering asset-based loans that focus on the value of the property rather than credit history. In contrast to traditional banks, we deliver fast and trustworthy funding, with loan approvals and funds accessible within a matter of days. Our efficient system in Newton is particularly suited for investors dealing with properties in need of rehabilitation or without a Certificate of Occupancy.
How do fix and flip loans work?
Securing a fix and flip loan through West Forest Capital is a hassle-free process. Interest rates range from 9% to 12%, along with standard closing costs. Our financing usually covers up to 85% of the purchase price and 100% of the renovation expenses, disbursed in stages as work is completed. These short-term loans are structured to keep the total amount financed within 65% of the property’s after-repair value (ARV).
What do fix and flip lenders look for?
We are a private lender specializing in loans to LLCs, with a process that includes evaluating both the purchase price and after-repair value (ARV) to validate the investment’s potential. Our focus is on critical factors such as acquiring properties at or below market value, following a detailed rehab schedule, and ensuring the title is clear. Our objective is to back your investment success and promote smooth loan repayment.
What is a fix and flip loan used for?
West Forest Capital’s fix and flip loans are tailored for real estate investors facing challenges with traditional bank financing. These loans provide the speed and flexibility required to purchase and renovate properties for resale or rental, and are ideal for quick auction acquisitions. Additionally, they support cash-out refinancing, refinancing existing mortgages, and purchasing properties under an LLC—options typically unavailable through conventional banks.
What should I consider before applying for a fix and flip loan in Newton?
Prior to applying for a fix and flip loan, it’s essential to assess the property’s profitability and prepare a comprehensive renovation plan. West Forest Capital, acting as your private lender, will examine the feasibility and profit margins of your project. Understanding the loan terms and how they fit with your project’s timeline and budget is key to optimizing your financing experience with flip lenders.
How quickly can I access funds once approved for a fix and flip loan?
Upon approval, West Forest Capital’s efficient funding process ensures that the money for your fix-and-flip project is available without delay. This allows you to quickly purchase and renovate your property, keeping your project on track. Our ability to provide rapid funding has made us a preferred lender in the highly competitive real estate market.
