When entering a hard money loan contract in St. Louis, understanding the specifics can make or break your investment. At Westre Financial Group, decades of experience have shaped a reliable and straightforward lending approach. Here’s a detailed look at the ten key elements you should expect in a contract with them.
1. Loan Approval Based on Collateral
Hard money loans through Westre Financial Group are determined solely by the property’s value, not the borrower’s creditworthiness. If the collateral supports the loan amount, approval is straightforward. This approach gives many investors a faster and more accessible route to financing compared to traditional banks.
2. 100% Funding of Purchase Price
One standout feature of Westre Financial’s contracts is their offer to fund 100% of the property’s purchase price. This means borrowers do not need to secure additional financing for the acquisition itself, allowing investors to act quickly when opportunities arise without financial hurdles slowing them down.
3. Proof of Funds for Renovation Costs
While Westre Financial funds the purchase price, they require proof that the borrower has sufficient funds to complete the necessary renovations. Borrowers must submit this proof along with their application. This ensures that only serious and prepared investors move forward, which protects both the borrower and the lender from project failures.
4. No Rehabilitation Funding Provided
Westre Financial does not include rehab funding as part of the loan. Their firm belief is that investors should be financially prepared to handle renovations independently. They view this as a measure of readiness and seriousness in the real estate investment business.
5. Exclusive Lending in St. Louis City and County
The scope of Westre Financial’s lending is intentionally narrow: they only loan within St. Louis City and County. This geographic focus allows them to leverage their local expertise, accurately assess property values, and provide better advice to borrowers based on real, comparable sales in the immediate area.
6. Fast and Direct Property Evaluation
The property evaluation process at Westre Financial is fast and handled personally. Brad Westre typically visits the property the very next day after receiving the completed application. He evaluates four critical aspects: the purchase price, estimated renovation costs, soft charges, and the anticipated selling price based on recent comparable sales. This thorough yet swift evaluation ensures that both parties understand the potential profitability before moving forward.
7. No Junk Fees
Unlike many lenders, Westre Financial charges no hidden or extra fees. Borrowers will not encounter charges for credit checks, appraisals, processing, or applications. The only fee is a transparent 2% origination fee, which is added to the loan amount. This clear structure helps investors easily calculate their project costs without unexpected expenses.
8. Direct Funding Without External Investors
Westre Financial funds all loans from their own resources. They do not rely on borrowed money or external investors to fund loans. This ensures that loan decisions are made in-house, lending processes are quick, and there is no risk of funding falling through due to third-party complications.
9. Mortgage Clause Requirement
Every hard money loan contract with Westre Financial includes a specific clause: Westre Financial Group, LLC must be named as the Mortgagee. The clause must be stated exactly as “Westre Financial Group, LLC, PO Box 411035, St. Louis, MO 63141.” This protects their investment interest in the property while the loan is active.
10. No Prepayment Penalty
Borrowers who wish to pay off their loans ahead of schedule are free to do so without penalty. Westre Financial imposes no prepayment penalties, giving borrowers more flexibility in managing their real estate investments and their exit strategies.
Conclusion
A hard money loan contract in St. Louis through Westre Financial Group is designed with clarity, speed, and reliability in mind. Their decades of experience, local expertise, and commitment to straightforward terms create an ideal environment for serious real estate investors. Ready to work with the experts? Visit Westre Financial Group’s website today to download your applications and get started.