If you’re a real estate investor in St. Louis, chances are you’ve heard the term “hard money loan” come up more than once. It’s a go-to financing option for those needing quick access to funds for purchasing residential investment properties. But is it right for you? Let’s break down the pros and cons — specifically in the St. Louis City and County market — so you can make an informed decision.
This guide is based entirely on how one of the region’s most experienced lenders, Westre Financial Group, operates. Since 2001, they’ve funded over 2,650 loans worth more than $143 million, all with their own capital. Their system provides a no-frills, reliable lens through which to evaluate the real impact of hard money lending.
What Is a Hard Money Loan?
Before diving into the pros and cons, it’s important to understand the core concept. A hard money loan is a type of financing that’s collateral-based. This means loan approval is based on the value of the property, not your credit score or financial background.
If the deal makes sense, it gets funded. At Westre Financial, the focus is simple: If the numbers work, you’re approved. That’s the entire premise of how their lending works in St. Louis.
The Pros of Hard Money Loans in St. Louis
No Credit Checks or Borrower Scrutiny
Westre Financial doesn’t weigh your creditworthiness. The loan decision is based strictly on the property’s potential. If the deal looks profitable, you’re in. This is ideal for seasoned investors who may have capital tied up elsewhere or who want to move quickly without a traditional bank slowing things down.
Simple Fee Structure
Hard money loans can often come with hidden costs. Westre Financial keeps it transparent: a 2% origination fee, and that’s it. There are no credit check fees, no processing fees, no application fees, and no appraisal fees. The total cost is upfront and added to the loan.
100% Purchase Price Loans
Most lenders won’t cover the full purchase price of an investment property, but Westre Financial will — as long as the deal makes sense on paper. This gives you room to use your available capital for renovations, assuming you already have those funds ready.
Local Expertise
Brad and Barb Westre have been in the residential rental business since 1972. At one point, they owned and managed over 300 properties and ran a property management company with more than 850 under management. This gives them a depth of understanding that goes beyond lending — they know what makes a deal good, and they’ll help you steer clear of the bad ones.
The Cons of Hard Money Loans in St. Louis
Strict Geographic Limitations
They only lend in St. Louis City and County. While this hyperlocal focus allows for better insight and faster service, it means you’re out of luck if your property is outside those areas.
No Flood Zone Properties
If the property is located in a flood plain, it’s a no-go. The cost of flood insurance is seen as too high, and therefore the risk isn’t worth it from their perspective.
Direct, No-Nonsense Approach
While not exactly a con, it’s worth noting that Westre Financial has a very straightforward, no-fluff approach. They don’t entertain risky projects, and they don’t sugarcoat bad deals. For some, this bluntness is refreshing. For others, it may feel a bit harsh, especially if you’re new to real estate investing.
Is a Hard Money Loan Right for You?
If you:
- Are focused on properties in St. Louis City or County,
- Need fast access to capital for a solid deal,
- Want to avoid the hassle and delays of traditional banks,
Then a hard money loan from Westre Financial might be the right fit.
If you:
- Are buying outside St. Louis,
- Or need a loan based on your personal credit profile,
Then this type of loan won’t work for you.
Final Thoughts
Hard money lending is not one-size-fits-all. But when it fits — it can be a game-changer. Westre Financial Group offers a streamlined, honest, and efficient model tailored for serious investors in St. Louis who are ready to move fast on smart deals.
Ready to get started or learn more? Visit Westre Financial Group and download your application today.