Westre Financial
Group, LLC

Investing in real estate often requires swift financing solutions, especially when timing can mean the difference between landing a lucrative deal or missing out. If you’re a real estate investor in St. Louis, you’ve likely heard of hard money loans. But how do these unique financing options work, and why are they particularly beneficial for investors in St. Louis? Let’s dive into the details.

What Is Hard Money Lending?

Hard money lending is a type of short-term loan typically used by real estate investors. Unlike traditional bank loans, which focus heavily on the borrower’s credit history and income, hard money loans are collateral-based. This means the lender evaluates the value of the property you’re purchasing or renovating as the primary factor in approving the loan.

For investors in St. Louis, where real estate opportunities are plentiful but often competitive, hard money loans offer a quick and reliable solution. These loans are particularly attractive for fix-and-flip projects, rental property purchases, or situations where conventional financing isn’t an option.

How Hard Money Lending Works

Understanding how hard money lending works can help you decide if it’s the right choice for your investment strategy. Here’s a step-by-step overview:

  1. Application Process
    Borrowers start by submitting a loan application. At Westre Financial Group, for example, investors need to complete a Borrower Application and a Loan Request Application. These forms help the lender understand the property details, the borrower’s intent, and the expected financial outcomes.
  2. Property Evaluation
    Once the application is submitted, the lender evaluates the property’s value and potential. In St. Louis, this involves analyzing the purchase price, renovation costs, and anticipated selling price based on comparable sales in the area.
    At Westre Financial, experienced professionals like Brad Westre personally inspect the property to ensure the deal makes financial sense for the borrower.
  3. Approval Based on Collateral
    Unlike banks, hard money lenders don’t rely heavily on the borrower’s credit score. Instead, they assess whether the property serves as sufficient collateral to secure the loan. If the numbers add up and the deal appears profitable, approval is quick.
  4. Loan Terms
    Hard money loans typically cover 100% of the purchase price. However, borrowers must have their own funds for renovations, as rehab costs are generally not included. Terms are short, often ranging from 6 months to 2 years, with higher interest rates compared to traditional loans.
  5. Fast Funding
    One of the biggest advantages of hard money loans is the speed at which they are processed. At Westre Financial Group, loans are approved swiftly, and funds are available as soon as the title company is ready.

Why Use Hard Money Loans in St. Louis?

St. Louis has a unique real estate landscape that makes hard money lending an excellent option for local investors. Here’s why:

  1. Competitive Market
    The real estate market in St. Louis can be fiercely competitive, especially in sought-after areas like Tower Grove, Central West End, and Clayton. Hard money loans allow investors to close deals faster than traditional financing options.
  2. Flexible Lending Criteria
    For investors who may not meet strict bank requirements, hard money loans provide an alternative. Whether you’re a seasoned investor or new to the market, the collateral-based approach offers greater accessibility.
  3. Local Expertise
    St. Louis-specific lenders like Westre Financial Group specialize in the local market. Their deep understanding of the region ensures accurate property evaluations and better guidance throughout the process.
  4. Quick Turnaround for Fix-and-Flip Projects
    If you’re flipping properties, time is of the essence. Hard money loans give you the liquidity to acquire, renovate, and sell properties quickly.

Advantages of Hard Money Loans

Hard money loans are a lifeline for many real estate investors. Here’s what makes them appealing:

  • Fast Approval and Funding: Loans can be approved in days, not weeks.
  • No Credit Score Barriers: Collateral takes precedence over creditworthiness.
  • 100% Purchase Price Coverage: Lenders like Westre Financial Group finance the entire purchase price of the property.
  • No Junk Fees: Unlike traditional loans, hard money loans often exclude unnecessary costs like credit check fees and appraisals.

Things to Consider

While hard money loans are incredibly useful, they may not suit everyone. Here are a few factors to keep in mind:

  1. Higher Interest Rates
    Because hard money loans carry more risk for the lender, the interest rates are higher than traditional loans.
  2. Short Loan Terms
    Borrowers must repay the loan within a relatively short period, typically within 6 to 24 months. Make sure your investment strategy aligns with this timeline.
  3. Rehab Costs Not Included
    At Westre Financial Group, for example, borrowers must have their own funds for renovations. Ensure you’re financially prepared for this aspect of your project.

Why Choose Westre Financial Group?

For real estate investors in St. Louis, choosing the right lender is critical. Westre Financial Group stands out for several reasons:

  • Experience: With over 20 years in the business and $143 million in loans funded, their expertise is unmatched.
  • Local Knowledge: They specialize exclusively in St. Louis City and County, providing tailored guidance.
  • No Junk Fees: The only cost is a 2% origination fee, added to the loan.
  • Fast and Reliable: Loans are processed in-house for maximum efficiency.

Conclusion

If you’re ready to take the next step in your real estate investment journey, hard money loans might be the solution you’ve been seeking. With their speed, flexibility, and local expertise, they empower investors to seize opportunities and maximize profits.

At Westre Financial Group, LLC, we pride ourselves on providing fast, reliable funding with your success in mind. Whether you’re acquiring a new rental property or planning your next fix-and-flip, our team is here to guide you every step of the way.

Call us or visit our website. Let WESTRE FINANCIAL GROUP, LLC help you make your real estate investment dreams a reality!