Miami Hard Money Loans
Interest Rates Starting at 10%
West Forest Capital is a Miami, FL hard money lender, financing real estate investments up to $5 million.
We have gained a reputation as the fastest hard money lending supplier in Florida because we know how critical each day can be in the competitive Miami real estate market.
- We are a direct lender, not a broker
- Same day quick pre-approval
- Funding in 3-14 days, although 1 day is possible
- Loan amounts up to $5 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 Florida:
Recently Funded Hard Money Loans in Florida
Palm Beach Gardens , FL
- Location: Palm Beach Gardens, FL
- Purchase Price: $325,000
- Rehab Budget: $65,000
-
Loan Amount: $243,750 at Closing
+ $65,000 Rehab = $308,750 - ARV: $525,000
- Exit Strategy: Sale
- Investor Capital: $81,250
- Equity Created: $135,000
- Investor Return on Capital: 166%
Our client is an experienced investor in the Palm Beach County area and found this off-market home after contacting homeowners in the vicinity of another project. While the home was livable, it was not updated, and needed significant repairs (kitchen, floors, bathrooms, paint, roof, HVAC). Utilizing a Palm Beach County hard money loan in Palm Beach Gardens, our client completed the work and sold the home in a 9 months period, yielding nearly a 200% gain on his original investment.
West Palm Beach, FL
- Location: West Palm Beach, FL
- Purchase Price: $290,000
- Rehab Budget: $30,000
-
Loan Amount: $232,000 at Closing
+ $30,000 Rehab = $262,000 - ARV: $400,000
- Exit Strategy: Rent & Refinance
- Investor Capital: $58,000
- Equity Created: $80,000
- Investor Return on Capital: 138%
This was our client’s first real estate deal. Our client sought to take advantage of the momentum in West Palm Beach’s real estate market and anticipated rent increases in the area. Although this was a new real estate investor, they received 80% of the purchase price and 100% of the rehab costs. As a local Palm Beach hard money lender in West Palm Beach, we were comfortable that our client was buying below market in this building. After doing cosmetic repairs (primarily removing the carpet and updating the kitchen), our client found a great tenant and refinanced into a rental loan.
Boynton Beach, FL
- Location: Boynton Beach, FL
- Purchase Price: $437,500
- Rehab Budget: $55,000
-
Loan Amount: $339,000 at Closing
+ $55,000 Rehab = $394,000 - ARV: $570,000
- Exit Strategy: Sale
- Investor Capital: $98,438
- Equity Created: $87,500
- Investor Return on Capital: 89%
Our client obtained a Palm Beach County hard money loan in Boynton Beach to booster his offer for the property which beat out several other offers with conventional financing. After the needed repairs were completed, the exit strategy was flexible: either a sale or a conventional refinancing once the property was stabilized and rented. Ultimately, our client came across another fix and flip opportunity and elected to sell the rehabbed original property to raise cash for a down payment on the next deal.
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 palm beach 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 west palm beach such as West Forest Capital will be able to fund the real 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 real 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 Miami loan is a great option.
Why Choose a Miami Hard Money Lender
Miami offers real estate investors a wide variety of opportunities. Many companies have re-located their headquarters, or some of their workforce, to the Brickell and Wynwood areas. As such, the office asset class has significantly outperformed in Miami as compared to other cities. Expanded work opportunities have resulted in very strong demand for multi-family housing in Little Havana, and Hialeah, North Miami, Surfside, and Sunny Isles.
In turn, rents have increased, and investors have seen strong valuations due to higher NOIs.
Similarly, single family homes and condos have also seen an increase in demand, with fully rehabbed properties especially desirable in Coral Gables, Aventura, Pinecrest, and Kendall.
As the hard money lender with local knowledge of the Miami real estate market, we are able to understand nuances in valuations, see your vision for the real estate investment property rehab, and give credit to value-add opportunities.
Financing your Miami Investment Property
Your Miami investment property will be evaluated based on both an as-is value and the after-repair value, or ARV — assuming rehab is needed. We can recognize if you are buying the property under market value, and can use the as-is value to make our lending decision.
If you are seeking a cash-out refinancing in Miami, we can also help with giving you maximum loan proceeds based on the value of your property. In that case, having a rental history helps but we can lend on vacant properties as well. Demonstrating that you are knowledgeable about the local area within Miami is also useful.
Your exit plan for the loan, whether that be a refinancing with a traditional bank or a sale of the property, will be an important factor in obtaining a Miami hard money loan.
Asset-backed Lender Focused on Customized Solutions
We provide hard money loans secured by investment real estate in Miami, Florida. The hard money loans we provide are based on the value of the property, so in some cases we can finance 100% of the purchase price and rehab amount.
Since we don’t have a minimum FICO score, we are able to work with you, even if your creditworthiness falls short with other lenders.
West Forest Capital also offers the longest private money loan available on the market (3 years). This is a great tool for real estate investors who need more time to stabilize the property and an “in-between” choice between hard money and longer-term financing.
If you need a hard money loan in Miami, please give us a call to discuss your scenario. In many cases, we can provide you with preliminary approval for purchase loans, construction loans, fix and flip loans, and other types of real estate loans right on the phone (a term sheet will follow shortly thereafter).
Frequently Asked Questions About Hard Money Lenders
What are hard money lenders?
A hard money lender is an asset based, private money lending source that offers loans based on the value of the asset being used as collateral to secure the loan. These types of lenders work differently than conventional lenders or financing options that place a greater emphasis on credit score and income.
How do hard money loans work?
A hard money loan is a quicker alternative to traditional lending sources like banks or credit unions. When a borrower takes out a hard money loan, the amount being borrowed is based on the value of the real estate that is used as collateral.
One of the biggest advantages of working with a hard money lender is that hard money loans are typically approved and funded in a matter of days instead of the weeks or months it can take for conventional banks and lending institutions to make a decision and fund the loan.
Loan terms can also vary and some hard money lenders may charge higher rates and a prepayment penalty if the loan is paid off too early. Some private lenders who originate hard money loans may require a minimum interest period of three to six months.
What do hard money lenders look for?
Most hard money lenders will focus more on loan to value (LTV) when making a decision to lend money to a prospective real estate investor. A borrower’s debt to income ratio, employment history, and other factors are not considered, and the value of the property is the main underwriting component. The borrower’s credit score is also given some weight, but it is a secondary factor.
What is hard money used for?
Hard money loan programs lend money to borrowers for shorter periods of time and the funds are typically used for the purchase of residential or commercial real estate. In some instances, these are properties that are in need of major renovations or repairs and real estate investors who can’t secure a loan with a traditional bank due to the condition of the property will turn to a hard money lender to secure the capital they need to purchase the asset.