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Hard money and fix and flip loans in The Bronx, New York
Loans for two- and three-family homes, small apartment buildings and renovations across the Bronx.
The The Bronx market for investors
The Bronx has the lowest entry prices in New York City and a large stock of two- and three-family homes and walk-up and elevator apartment buildings. Strong rental demand and new development along the Harlem River and in the South Bronx have drawn more investors.
Investors renovate multi-family homes for resale or rent, buy small buildings to hold, and build new two- and three-family homes on infill lots. Rent stabilization covers much of the older apartment stock, so the rent roll is central to every deal.
Neighborhoods investors ask about
- Mott Haven and Port Morris: row houses and new development in the South Bronx
- Wakefield, Williamsbridge and Eastchester: two- and three-family homes in the north Bronx
- Parkchester, Castle Hill and Soundview: attached homes and condos
- Throggs Neck, Pelham Bay and Country Club: detached homes on the east side
- Riverdale: higher-priced homes and co-op-heavy apartment stock
Plan for these on a The Bronx deal
- New York City’s mortgage recording tax is about 1.8% of a loan under $500,000 and 1.925% at $500,000 or more on one- to three-family homes and condos, and 2.8% on larger buildings and commercial property at $500,000 or more. Build it into your cash to close.
- On the sale, the seller customarily pays the city transfer tax (1% up to $500,000 and 1.425% above on one- to three-family homes) and the state transfer tax of 0.4%. Buyers at $1 million or more pay the mansion tax.
- Buildings of six or more units built before 1974 are often rent stabilized, and Good Cause Eviction covers many other rentals unless an exemption applies, such as an owner with 10 or fewer units statewide. Ask for the rent roll and registration history before you sign.
- Work that changes layout, structure, plumbing or the unit count needs Department of Buildings filings, usually through a registered architect or engineer, and a new certificate of occupancy for a change in units.
- Paint in buildings built before 1960 is presumed to contain lead. Local Law 31 requires an XRF test in rental units of those buildings, including rentals in one- and two-family homes.
Loans available in The Bronx
| Program | Use it for | Top leverage |
|---|---|---|
| DSCR rental loans | Purchase or refinance of long-term rentals, two- to four-family homes, condos and small multifamily | 85% loan-to-value to buy, 80% on a cash-out refinance |
| Ground-up construction loans | Building a home, a two- or three-family or a small apartment building, lot included | 90% of cost for experienced builders, up to 70 to 75% of the finished value |
| Fix and flip loans | Purchase plus renovation of a property you intend to sell | 90% of the purchase price and 100% of the rehab, up to 70 to 75% of after-repair value |
| Portfolio and commercial loans | A group of rentals under one note, or multifamily and commercial property | 80% on a portfolio purchase; commercial priced per deal |
The Bronx hard money loans: common questions
Yes. We finance flips, two- and three-family rentals, small apartment buildings and new construction across the borough.
We review them case by case on the in-place rent roll. Stabilized rents are hard to raise, so the deal has to work on current income.
Local Law 18 bars renting out a whole home or apartment in the city for less than 30 days, so investment properties are underwritten on long-term rent.
Fix and flip loans average up to 21 days and can close in about 7 days when title and insurance are ready. Rental and DSCR loans take about 30 days, appraisal included. In New York each side is represented by an attorney, and a title company insures the title.
Looking at a property in The Bronx?
Send the address, the price and what you plan to do with the property. We will reply with the leverage and pricing that fit your deal.