Hard Money Lender in White Plains, NY

Hard money lenders are asset-based lenders who are not banks. While both banks and hard money lenders extend mortgage loans, the difference lies in their lending criteria and requirements. Hard money lenders focus more on the underlying property as collateral, while banks evaluate the borrower’s credit and financial history in great detail. As a result, hard money lenders can underwrite and fund loans much faster, sometimes within a single week, whereas traditional banks often take months.

Real estate investors often choose private money lenders for transactions requiring speed, such as foreclosures or auction purchases where closing deadlines are strict. These loans also come into play when properties are in poor condition or do not yet have the required Certificate of Occupancy. In competitive real estate markets, especially White Plains, investors often rely on hard money loans to secure deals quickly.

West Forest Capital provides financing for situations that traditional banks avoid. We can fund deals even for borrowers who have poor credit or are actively repairing their credit history. Low credit scores are not a barrier to our programs. Furthermore, we provide refinancing and cash-out loans, helping real estate investors remain versatile and ready to act on opportunities.

Hard money loans are considered easier and faster to obtain than traditional bank mortgages, but as a result they carry higher interest rates. Typically, these rates range from 10 to 12 percent, with an additional two points due at closing. The length of the loan is often one or two years, and depending on the project, the loan can be divided into two sections.

1. Funds for the purchase, typically cover 70 to 85% of the purchase price.
2. Funds for rehab, if necessary, which may cover up to 100% of the renovation costs.

In situations where rehab is required, funds are released after the work is completed, also known as disbursement in arrears. For instance, if the loan includes $50,000 for renovation, the borrower would first perform $15,000 worth of work before requesting reimbursement of that same amount from the lender. This continues step by step until the entire rehab budget has been exhausted.
These loans are commonly applied as bridge financing, fix and flip loans, or commercial property loans. They are designed in such a way that the full loan, which includes both purchase money and rehab funds, does not exceed 65 percent of the property’s projected ARV. They are especially valuable in fast-moving real estate markets where immediate access to capital is necessary for investors to secure properties.

At West Forest Capital, we extend hard money loans in the form of commercial loans, which means we fund LLCs rather than individual borrowers. If you do not yet have an LLC established, this should not cause any concern, because the process of creating one is fast, simple, and requires only one member, which may be yourself.

When reviewing a financing request, we assess both the property’s purchase price and its ARV, or After Repair Value. This ensures that the numbers align with sound investment standards. Properties acquired below or at market value tend to qualify most effectively, especially when the borrower is also requesting funds to cover renovation work. In those instances, we expect to see a clear plan for the rehab process, including timelines and a commitment to finish the work on schedule. We also require that the property’s title be clear of issues, which means any judgments or liens tied to the property or to the LLC must be fully resolved prior to funding.

Our goal is always to help our clients succeed in their real estate projects. Much like other hard money lenders, we want your investment to generate positive returns. This is why we carefully review every deal to ensure there is enough financial margin to absorb all costs, such as the purchase price, rehab expenses, interest payments, closing fees, and other obligations, while still leaving room for profit. That is the standard we follow for every loan we underwrite.

For time-sensitive projects or investors working in White Plains, a private money lender like West Forest Capital provides a reliable and strategic way to move forward quickly.

A hard money loan is most frequently sought after in the following cases:

• To purchase and rehabilitate a property that does not meet the requirements of a traditional bank loan, often due to property condition or borrower credit. After completion, the property can be resold to a retail buyer. This is known as a fix and flip.
• To purchase and improve a property that banks reject, with the plan to rent it out afterward. Once stabilized with tenants, the property can qualify for refinancing at lower rates through a conventional lender.
• To fund purchases that must close in a timeframe much shorter than what banks can accommodate. For example, in a foreclosure auction, a hard money lender can often provide financing in a week, while banks may take months.
• To obtain a quick cash-out refinance by pledging an existing property as collateral.
• To refinance an upcoming loan that is due to expire and needs to be replaced immediately.
• To complete a buyout of a family member or business partner. Hard money lending allows ownership to be consolidated, followed by refinancing into longer term debt.