Westre Financial
Group, LLC

When it comes to real estate investing, financing is often the biggest hurdle. Traditional lenders like banks may have low rates, but their strict requirements, lengthy approval processes, and risk-averse nature often make them unsuitable for investors looking for speed and flexibility. This is where hard money loans come in.

Hard money loans are short-term loans secured by real estate. Unlike traditional loans, they are asset-based, meaning the property’s value determines approval rather than the borrower’s creditworthiness. These loans are particularly popular among real estate investors, and for good reason. Let’s dive into the top five reasons why people choose hard money loans.

1. Speed of Funding

Time is of the essence in real estate investing. Whether you’re competing for a hot property or need to close quickly on a deal, traditional bank loans often can’t keep up. The approval process for a bank loan can take weeks or even months, requiring mountains of paperwork and multiple credit checks.

Hard money loans, on the other hand, are designed for speed. Many lenders can approve and fund a loan in just a few days, making them a game-changer for investors. For example, Westre Financial Group, LLC, specializes in fast, reliable funding, ensuring you never miss out on an opportunity due to financing delays.

2. Flexible Approval Criteria

Traditional lenders rely heavily on the borrower’s credit score, income, and financial history to approve a loan. This can exclude many individuals who might be perfectly capable of succeeding in real estate but don’t fit the mold of a “typical borrower.”

Hard money loans focus primarily on the value of the property being purchased or renovated. If the property’s value and potential justify the investment, the loan is likely to be approved. This flexibility is particularly beneficial for:

  • First-time real estate investors.
  • Borrowers with less-than-perfect credit.
  • Entrepreneurs with unconventional income sources.

At Westre Financial Group, the focus is strictly on the property’s potential, ensuring borrowers with a solid plan aren’t held back by arbitrary credit requirements.

3. Access to 100% Purchase Price Financing

One of the most significant challenges for real estate investors is coming up with a down payment. Traditional lenders often require 20-30% of the purchase price upfront, which can be a substantial barrier.

Many hard money lenders, like Westre Financial Group, offer loans that cover 100% of the purchase price. This means investors can acquire properties without tying up their capital in large down payments. With more liquidity, investors can:

  • Take on multiple projects simultaneously.
  • Invest in renovations or other value-adding activities.
  • Retain financial flexibility for unexpected expenses.

This “no-money-down” approach is a massive advantage for seasoned and new investors alike.

4. No Junk Fees

Bank loans often come with a slew of hidden costs. From application and processing fees to credit checks and appraisal costs, these charges can add up quickly, cutting into your profits.

Hard money lenders tend to be more transparent about their fees. For instance, Westre Financial Group eliminates the fluff, charging only a 2% origination fee that is added directly to the loan. There are no appraisal fees, no credit check costs, and no unnecessary add-ons. This level of transparency allows borrowers to better estimate costs and maximize their return on investment.

5. Expert Guidance and Local Expertise

When you work with a hard money lender, you’re not just getting financing; you’re often gaining a partner with deep industry knowledge. Many lenders, especially those with extensive experience, can help investors avoid costly mistakes by providing guidance on property selection, renovation budgets, and market trends.

Westre Financial Group has been in the hard money lending business since 2001 and has facilitated over 2,650 loans totaling $143 million. Their unparalleled experience in the St. Louis market enables them to guide investors through every step of the process. Their insights into local market dynamics, combined with their commitment to keeping borrowers out of bad deals, set them apart from the competition.

Why Hard Money Loans Are Ideal for St. Louis Investors?

The St. Louis real estate market offers unique opportunities for investors, from affordable properties to high rental demand. However, these opportunities often require quick action and local expertise. Hard money loans are particularly suited to this market because they:

  • Provide the speed needed to secure competitive deals.
  • Offer flexibility to navigate local market conditions.
  • Ensure borrowers have the funds required to capitalize on high-potential properties.

With hard money loans from a trusted local lender like Westre Financial Group, investors can unlock the full potential of the St. Louis market.

Conclusion

Hard money loans offer a wealth of benefits, from fast funding and flexible approval criteria to transparent costs and expert support. For real estate investors, they can be the key to unlocking new opportunities and achieving financial success.

If you’re ready to take your real estate investments to the next level, partner with Westre Financial Group, LLC. With over two decades of experience and a proven track record in St. Louis City and County, they are uniquely positioned to help you succeed.

Contact Westre Financial Group today or visit their website to get started. Download the borrower and loan request applications now and let us guide you to success in your real estate journey!