Renovation Loans
Rates Starting at 10%
West Forest Capital is a renovation lender, financing real estate investments up to $5 million. We have gained a reputation as the fastest renovation lender because we know how critical each day is in the competitive real estate market.
- We are a direct lender, not a broker
- Same day pre-approval
- Funding in 3-12 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:
- 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 Investment Property Renovation Loans
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Jersey City, NJ
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Newark, NJ
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Elizabeth, NJ
Why Use a Renovation 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 investment property renovation loans, with funding available in just 3 to 12 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 investment property renovation loans for properties that do not meet standard banking criteria.
- If You Have Less-Than-Perfect Credit: 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 renovating your investment property 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 renovation loan is structured as a business-purpose loan to your LLC.
Why Choose Us For Your Renovation Loans
We’re passionate about supporting real estate investors with their renovation projects, providing specialized renovation loans tailored to meet your project’s unique needs. Our expertise spans beyond local regulations; we understand the critical elements involved in planning, budgeting, and structuring renovation financing for properties in various markets. With experience working alongside contractors, navigating permit requirements, and coordinating with city inspectors, we’re prepared to guide you through the entire renovation loan process. Let us be your trusted partner, helping you bring your investment properties to life with confidence and ease.
Finance Your Renovation Property
The market for renovating properties is strong, with high demand and a solid supply of homes ready for improvement. This setup offers a promising opportunity, with attractive spreads between purchase prices and renovation costs.
However, this active market also brings competition, as many real estate investors want to capitalize on these opportunities. Our team at West Forest Capital is here to help you gain an edge with committed, cash-equivalent capital and make sure your renovation process is as seamless as possible. Let us support you every step of the way to help make your project a success.
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 renovation project is successful.
West Forest Capital also offers the longest hard money renovation 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 renovation lenders?
As an investment property renovation lender, West Forest Capital specializes in asset-based loans. Unlike traditional banks, we prioritize the property’s value over your credit history, making us a reliable choice for investors needing quick funding. Our process is streamlined, allowing for loan approvals and funding within days, which is ideal for properties requiring rehabilitation or lacking a Certificate of Occupancy.
How do renovation loans work?
Securing a renovation loan at West Forest Capital is straightforward. Expect interest rates between 9 and 12%, with additional fees at closing. Our loans typically finance up to 85% of the property’s purchase price and 100% of rehabilitation costs, disbursed in increments as renovations progress. Structured for short-term use, our loans aim to keep the total amount financed below 65% of the property’s after-repair value (ARV).
What documents or information will I need to provide to get pre-approved?
To get pre-approved, you’ll typically need to provide property details, purchase price, renovation budget, and an estimated after-repair value (ARV). Unlike a traditional home improvement loan or a home equity loan, we focus more on the property’s value and potential rather than solely on your credit score. However, having recent financials and proof of your LLC ownership can also help speed up the pre-approval process.
What do renovation lenders look for?
As a private money lender, we issue loans primarily to LLCs, not individuals. We assess both the purchase price and the ARV to ensure the investment is sound. Key elements we consider include purchasing properties at or below market value, adherence to a predetermined rehab schedule, and ensuring a clean title. Our objective is to help you profit from your investment, increasing the chances of a successful repayment of the loan.
What is a renovation loan used for?
Renovation loans from West Forest Capital are ideal for real estate investing scenarios where traditional banks might not venture. Whether it’s purchasing and renovating properties to flip or rent, or acquiring real estate quickly at auctions, our loans provide the flexibility and speed required. They are also useful for cash-out refinancing, refinancing existing mortgages, or purchasing properties under an LLC – a scenario often unsupported by traditional banks or even a home equity line.
How is the home renovation loan budget assessed and approved?
When you submit your rehab budget, our team reviews it to ensure it aligns with the property’s overall improvement plan and the estimated ARV. We fund 100% of the rehab costs as long as they meet our guidelines. If there are changes during the project, such as unforeseen costs, we can work with you to adjust, which is a flexibility often not available with traditional home improvement loans or home equity loans.
What should I consider before applying for a renovation loan?
Before applying for a renovation loan, assess the property’s potential for profit and make sure you have a clear plan for the renovation. As your private lender, West Forest Capital evaluates the feasibility and profitability of your project. Understanding the terms and how they align with your project timeline and budget is crucial to maximizing the benefits of financing with renovation lenders.
How quickly can I access funds once approved for a renovation loan?
Once approved, the speed of funding is a key advantage with West Forest Capital. Typically, funds for a renovation project are available swiftly, ensuring you can proceed with purchasing and renovating your property without delays. This efficiency is part of what makes us a preferred renovation lender in the competitive real estate market.
Can I apply if I have had credit issues in the past?
Yes, you can apply even if you’ve had credit issues. We don’t have a strict minimum credit score requirement, though we do review your overall financial history. This allows us to work with investors who may have a lower credit score but are investing in a property with a strong ARV.
Do I need to have an LLC before applying, or can I set one up after loan approval?
You’ll need to have an LLC set up before we can close on the loan. Since our renovation loans are designed as business-purpose loans, they are only available to LLCs rather than individuals. If you’re interested in other financing options, such as a personal loan or home equity loans, these can often be used without an LLC but do not provide the same level of funding or flexibility for investment properties.
Can I use the loan to finance renovations for rental properties, or is it only for properties intended for resale?
Yes, you can use our renovation loans for rental properties as well as properties intended for resale. Whether you’re preparing a property for new tenants or upgrading it for a potential sale, our loans provide the flexibility needed. Traditional home equity lines or personal loans often don’t offer the same level of support for investment properties, which is why our loans are designed to meet real estate investors’ specific needs.