Private Money Lenders in Tarrytown, NY

Private money lenders are individuals or private groups who lend their own funds, or pooled investor funds, against real estate. For a rental or rehab project in Tarrytown, that money may arrive faster than a bank loan, yet the terms are only as sound as the written agreement behind them. This page covers notes, recorded liens, escrow and attorney review, plus the licensing questions to ask in New York.

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Call to speak with a licensed loan officer about private money lenders for a property in Tarrytown. Programs vary by borrower, property and investor.

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Rents and rental stock in Tarrytown

$2,100Median gross rent

$2,000Median gross rent, Westchester County

2.3%Rental vacancy (for-rent units)

56%Rental homes built before 1960

Rents in Tarrytown run about $2,100 a month, against $2,000 for Westchester County. About 2.3% of the rental stock was vacant and listed for rent when the Census counted, a rough read on how quickly a finished unit may lease. 56% of rentals here were built before 1960, the kind of property private money often funds when a bank wants the work finished first.

How a private money deal is usually papered

Think of private money as a contract between two parties that should be written as carefully as one with a bank. The promissory note is your promise to repay and spells out the rate, payment schedule, maturity, late charges, default terms and any extension option. The security instrument, a mortgage or deed of trust, ties the loan to the property.

Recording that instrument with the county puts the lien on record and sets its priority against other liens. Ask who will prepare the documents, who records them and who holds the money until closing. A neutral escrow or settlement agent protects both of you. Before you sign anything, have your own attorney read every page, not just the summary sheet.

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Prefer to talk first? Call (888) 865-8230. Applying is not a loan approval or commitment to lend; programs vary by borrower, property and investor. ClearPoint Mortgage Advisors, NMLS #173855. Properties in FL, NY, NJ, PA, CT and VA only.

Checking out a private lender before you sign

Because private lenders are not all regulated the same way, the vetting falls largely on you. Ask how long they have been lending, how many loans they have funded on property like yours, and whether they can share references from borrowers. Ask to see proof that the funds are available.

Then ask about licensing. Depending on the state, the type of loan and how often someone lends, a private lender may need a license, and some loans on homes people live in carry extra requirements. Ask the lender directly whether they hold a license in New York and check what you can on NMLS Consumer Access or the state regulator's site. Be wary of anyone who wants large payments before closing or pushes you to skip an attorney.

Who this tends to fit

You need short-term money for a purchase or rehab with a clear exit
You are willing to pay more in exchange for speed and flexibility
You have a trusted contact or fund willing to lend against real estate
The property or deal is unusual and falls outside standard programs
You can show the lender a realistic plan to repay or refinance

Tarrytown offices and New York rules for investors

Deed and mortgage recording: Westchester County Clerk (Land Records). Your mortgage is recorded here after closing.

New York foreclosure process: judicial. A New York foreclosure is a lawsuit the lender files in State Supreme Court; if a judge grants a foreclosure judgment, the property is sold at a court-ordered auction. Short-term loans carry real risk if the exit plan slips, so know how default is handled before you sign.

New York LLC and business entity filings: New York Department of State, Division of Corporations, State Records and Uniform Commercial Code. Lenders lending to an LLC usually ask for its formation documents and good-standing record.

When a licensed loan may fit a Tarrytown deal better

Private money tends to cost more than a loan from a licensed lender in exchange for speed and flexibility. That trade can make sense for a short project, but it can be expensive for a property you plan to hold. If the property already rents, a DSCR loan, which qualifies on the property's cash flow instead of personal income documentation, may be worth comparing. If you need short-term funds to buy before you sell or to close on a property that needs work, a bridge loan from a licensed lender may cover a similar need.

This site does not lend money and is not a private money lender. It explains financing options and can connect you with a licensed mortgage broker who works with programs such as DSCR and bridge loans.

Before you call

Quotes for a comparable licensed DSCR or bridge loan
Questions about the lender's track record, references and funding source
Draft note and mortgage or deed of trust to review before signing
The purchase contract, rehab budget or rent roll for the property
A check of the lender's licensing status where it applies

Questions Tarrytown investors ask about private money lenders

Why does escrow matter in a private loan?

Escrow means a neutral party, such as a title company or closing attorney, holds the money and documents until every condition is met. It keeps funds from changing hands before the lien is recorded and the title is clear. Skipping escrow to save time can leave either side exposed. Insist on a proper settlement process even when the lender is someone you know.

Does a private money loan need to be recorded?

If the loan is secured by real estate, the mortgage or deed of trust should be recorded in the county records. Recording puts the lien on public record and sets its priority against other claims on the property. An unrecorded loan can create problems for both the borrower and the lender later. A title company or attorney can handle recording as part of closing.

What is the difference between private money and hard money?

The terms overlap. Private money usually describes funds from an individual or a private fund, sometimes someone you know. Hard money usually describes companies that make asset-based, short-term loans as a business. Both focus on the property more than your income, and both tend to cost more than licensed bank or mortgage loans in exchange for speed. The paperwork and lender vetting matter in either case.

Should I borrow private money against the home I live in?

Be very cautious. A loan secured by your own home puts that home at risk if the loan cannot be repaid or refinanced on time. Loans on owner-occupied homes carry consumer protections, including the lender's duty to make a good-faith determination of your ability to repay. Talk to a licensed loan officer about regulated options first, and have an attorney review any private offer.

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Get answers about private money lenders for a property in or around Tarrytown. Subject to credit approval; programs vary.