Hard Money Lenders in St. Louis

One West will typically lend no more than 65% to 70% of a property’s ARV (After Repair Value). So, what does that mean exactly?

If you purchase a home for $100,000 and invest $35,000 into rehabbing the home, then the property should be worth roughly $180,000. Using this simple example, One West would lend you up to 70% of $180,000 or $126,000 in this case.

All of our loans must be secured by a first-position lien. If you have a current loan, we can still make you a loan but your current first-position loan must be replaced by One West’s new first-position loan.

16% annual rate interest only – if you have a loan for $130,000 your monthly interest payment would be calculated as follows: $130,000 x 16% / 12 months = $1,733.33 monthly interest-only payment.

6-month interest-only loan term – after 6 months you may renew the loan.

2.5% origination fee – if you borrow $150,000 x 2.5% = $3,750 origination fee.

$750 application fee.

Other fees: you will incur typical closing costs at the time of closing for items such as: recording fees and title insurance policies (purchaser and lender). These are all ordinary closing costs.

No pre-payment penalty.

No appraisal fee.

Some real estate investors enjoy self-performing all the construction work and others like to hire a professional contractor who they can oversee completing the project. Either approach can work just fine but the important understanding is that you must start with a detailed plan. What does this mean? This means you must be involved and do your homework. You can trust people, but you still need to verify what they tell you. Real estate investing involves working with contractors who are vital to your success. However, I regularly see projects go over budget because an inadequate understanding of what work actually needs to be done and how much that work will cost is never compiled before the project starts. Do not hesitate to reach out and discuss any rehab challenges you may have.

Yes, we can lend money for the construction portion of your project. How does that work? At closing, any funds that are to be used for construction purposes only will be held by the title company’s disbursing office. The disbursing office will only release funds after you turn in the necessary paperwork such as an invoice, lien waiver, and copy of the check payment. In addition, One West will physically verify the work has been completed. Each draw request costs $295. The project size and scope plus your experience level are critical to determining how much construction money we may lend on a project. The total amount we will lend on any project is 65% to 70% of the ARV (After repair value).

Nobody will be a better advocate for your deal than you. Make sure you start procuring your insurance weeks before you close. We require proof of a builder’s risk insurance policy that must be pre-paid for 6 months in order to close your loan. You must submit a certificate of insurance that lists One West Associates, Inc. as the mortgagee. You must also evidence you have General Liability coverage limits of $1,000,000 and list One West Associates, Inc. as an additional insured.

Once you have a property under contract you need to communicate regularly with the title company. Title companies may need additional documents from you. Sometimes issues may arise when it comes to title matters so stay on top of your deal. If the title requests are not addressed promptly, it can delay your closing.