Massachusetts is a demanding place to invest in real estate. Prices are high, good properties attract several offers, and much of the housing stock is old enough to need serious work. Investors who do well here tend to have their financing arranged before they go looking.
This guide explains how hard money lending works for Massachusetts investors and where Sachem Lending fits in. If you want program details for the state, visit our Massachusetts hard money loans page.
Why Massachusetts investors use private lenders
A bank can be a good source of long-term financing. For an investment purchase on a deadline, it’s often too slow, and many banks won’t lend on a property that needs major renovation.
Private lenders approach the loan differently:
- Asset-based underwriting. The decision rests mainly on the property, the project and your experience, not solely on credit scores or income.
- Short terms that match the project. Our loans typically run 12 to 36 months.
- Flexibility in structure. A loan can be built around a renovation schedule or a construction timeline.
- Knowledge of the region. We’re based in Connecticut and lend throughout New England.
What investors run into in Massachusetts
High purchase prices
In Greater Boston especially, acquisition costs are high, and an investor needs substantial capital to compete. Sachem Lending makes loans from $500,000 to $25 million, depending on the property and the project.
Old and historic buildings
Cities such as Cambridge and Salem have many older and historic properties, and renovating them often means stricter rules and longer approvals. A realistic budget and timeline are essential, and so is a lender that understands renovation projects. Our team manages draw requests in-house.
Low inventory and strong competition
When few properties are for sale, sellers favor buyers who can show they have the money. Having a lender and a term sheet in hand makes your offer more credible.
Deals that don’t fit a bank
Mixed-use buildings, properties in poor condition and borrowers with complicated income are all hard for banks to approve. These are the situations private lending was designed for.
Loan programs for Massachusetts investors
- Fix and flip loans: for buying, renovating and reselling property
- Bridge and value-add loans: short-term financing while you stabilize or reposition a property
- New construction loans: for ground-up residential and commercial projects
- Entitled land development loans: for approved land ready for development
- Distressed acquisition loans: for purchasing distressed property
We lend on single-family, multifamily, retail, medical office, industrial and other commercial real estate.
How long does it take?
Most of our loans close in 30 to 45 days, depending on documentation and the condition of the property. Some close sooner when all requirements are met. You can see each step on our application process page.
Getting started
Send us the property location, the loan amount you need and your plan for the project. Our in-house team will review it and provide a term sheet if the project qualifies. You can apply online, read the FAQs, or contact us to speak with someone on our lending team.
