Private Money Lenders NJ
Rates Starting at 10%
- 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 $3 million
Property Types
- Multi-family
- Single-family Investment Properties
- Condominiums
- Retail
- Office Buildings
- Industrial & Warehouse
- Hotels & Motels
- Special Purpose & Mixed Use
- Parking Garages & Lots
- Land
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 Jersey:
- Hudson County
- Bergen County
- Passaic County
- Essex County
- Morris County
- Sussex County
- Warren County
- Union County
- Somerset County
- Middlesex County
- Hunterdon County
- Mercer County
- Monmouth County
- Burlington County
- Ocean County
- Atlantic County
- Cape May County
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 a New Jersey Private Money Lender?
Financing your New Jersey Investment Property
New Jersey is a robust real estate market offering proximity to major cities such as a New York City and Philadelphia. The state has a strong underlying economy, and prominent industries lead by pharmaceutical and life sciences, financial services, manufacturing, technology and transportation.
As a result, the real estate market is very liquid and offers strong opportunities for investors to add value.
New Jersey hard money lender West Forest Capital can help you succeed in this competitive market.
Asset-backed Lender Focused on Customized Solutions
With our knowledge of the New Jersey 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!
Frequently Asked Questions
What is a private money lender?
Private money lenders are non-bank, asset-based lenders. Although both banks and private money lenders make mortgage loans, private money lender requirements and lending criteria often vary significantly from a traditional bank. Private money lenders put much more emphasis on the underlying property, and less emphasis on the borrower.
The underwriting process is significantly shorter with a private money lender, and a loan can often be funded within a week (as opposed to three months or longer with a traditional bank). As such, real estate investors who buy foreclosures at auctions will often use a private money lender to fund the purchase because the terms of the auction require an expedited closing process. Also, private money lenders fund loans on properties that a traditional bank won’t fund — an example is a property that doesn’t have a Certificate of Occupancy (CO).
A private money lender is also a great choice for somebody who has poor credit or is rebuilding their credit; a low FICO score will not prevent you from getting a private money loan. Finally, private money lenders can also provide loans to refinance existing lenders or as a way to cash out on a property.
It’s important to note that private money lenders only lend on investment real estate, and do not make mortgages for residential purposes. You cannot live in a property that has a mortgage from a private money lender.
How do private money lenders differ from banks and credit unions lending for real estate investing, and what are the pros and cons of using their services?
What are the qualifications for a private money loan?
With private money loans (hard money loans), there are no credit score or income requirements. This makes it possible for more real estate investors to obtain funding for their rehab projects. The qualifications for a private money loan include:
- Down Payment: The down payment serves as collateral for your loan and can range from 20% to 40% depending on the specific type of property. These down payments are calculated based on the Loan-To-Value (LTV) ratio of the property. For example, let’s say you want to purchase a residential property for $400K. If the LTV ratio offered is 75%, then you would be responsible for the $100K down payment.
- Appraisal: This is ordered by West Forest Capital.
- Insurance Policy: West Forest Capital should be the loss payee and additional insured.
- Builder’s Risk Insurance: For extensive rehab projects.
- Lender Title Insurance: West Forest Capital as the beneficiary.
- Credit Score: While FICO credit scores of 600+ are preferred, it’s still possible for projects to be funded with a score below this amount.
Can I get pre-approved for a private money loan?
What can private money loans be used for?
Private money loans can be used for:
- Acquiring and renovating properties that traditional banks won’t finance (due to your credit or the property’s condition)
- Quickly refinancing an existing mortgage on a property that is approaching its maturity date
- Obtaining almost immediate cash-out refinancing by using an already-owned property collateral
- Financing real estate transactions that require a fast closing, which traditional banks might not be able to accommodate
- Acquiring a property under the name of a Limited Liability Company (LLC). Since traditional banks frequently do not extend loans to LLCs, borrowers interested in owning properties under this structure can choose a private money loan as an alternative
