If you are a real estate investor looking to purchase, renovate, and sell properties quickly in St. Louis, understanding how fix and flip loans work is crucial. At Westre Financial Group, we specialize in providing hard money loans to investors in St. Louis City and County, helping them secure funding based on the property’s value rather than personal credit history. Here is a straightforward guide on how our fix and flip loan system works.
What Is a Fix and Flip Loan?
A fix and flip loan is a type of short-term financing used by real estate investors to purchase and renovate a property with the goal of selling it for a profit. Unlike traditional loans, a fix and flip loan through Westre Financial Group is a hard money loan, meaning it is collateral-based. Little or no weight is given to the creditworthiness of the borrower. If the collateral makes sense, the loan is approved.
How Does the Application Process Work?
At Westre Financial Group, we have streamlined the application process to make it fast and investor-friendly.
First, the borrower completes the borrower application available on our website. If a pre-approval letter is needed, it is provided after this step. Once a property is identified, the borrower fills out the property application and submits proof of funds necessary to complete the renovation. It is essential to have your rehab money secured upfront, as we do not provide funds for renovation.
Brad Westre personally visits the property the next day to evaluate four key criteria:
- Purchase price
- Renovation cost
- Soft charges
- Anticipated selling price based on comparable sales in the area
If the evaluation suggests that the borrower will make a reasonable profit, the loan is approved for 100% of the purchase price and will fund as soon as the title company is ready.
What Areas Do We Serve?
Westre Financial Group exclusively serves St. Louis City and St. Louis County. We do not offer loans outside these areas because our expertise is deeply rooted in the local real estate market. Our in-depth understanding of the area allows us to guide investors effectively through the purchase and renovation process.
Key Requirements and Policies
When you work with Westre Financial Group, there are several important policies to keep in mind:
- We only loan 100% of the purchase price; no rehab funds are provided.
- We do not loan on properties located in floodplains due to the prohibitive cost of flood insurance.
- We charge only a 2% origination fee, which is added to the loan amount. There are no junk fees such as credit check fees, appraisal fees, processing fees, or application fees.
- Our loans require that Westre Financial Group, LLC be named as the Mortgagee with the appropriate clause.
- There is no prepayment penalty.
- Non-Missouri residents are welcome to apply.
- All loans are processed in-house, ensuring fast and reliable service.
Why Choose Westre Financial Group for Your Fix and Flip Loan?
Choosing the right lender is critical for the success of your investment project. Here is why investors choose Westre Financial Group:
- Low cost of borrowing
- Fast and reliable funding
- 100% of purchase price covered
- No hidden junk fees
- Local expertise in St. Louis City and County
- Loans processed entirely in-house
- Welcoming to out-of-state investors
We pride ourselves on keeping investors out of bad deals. Our experience in the hard money business since 2001 and residential rental business since 1972 gives us a unique perspective that none of our competitors can match.
Conclusion
If you are serious about real estate investing in St. Louis and want a lender who understands the market and supports your success, Westre Financial Group is your trusted partner. Our no-nonsense, experienced approach to hard money lending ensures you get fast, reliable funding without the hassle. Visit our website today to start your application and move one step closer to your next successful investment.