RATES & TERMS
12% – 16% annual rate/interest only
2.5% – 3% origination fee
$750 application fee
12 month term
FREQUENTLY ASKED QUESTIONS
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.
ABOUT ONE WEST
First, I want to personally thank you for visiting our website to learn more about how One West Hard Money lenders St. Louis can help you in your real estate investing career. If you are like me, you are probably optimistic about investing in the St. Louis real estate market. There are many great opportunities out there, and having the perspective to find those big breaks is very important. At One West in St. Louis, we share our years of experience as hard money lenders to help you make the best decisions when you are evaluating a potential investing opportunity. We have the systems in place to quickly evaluate a deal to contemplate your risk versus your reward.
Relationship. Trust. Flexibility
These 3 words are absolutely critical when it comes to a hard money loan, real estate investing, and the relationship we are both pursuing. One West wants to lend you capital and you want to borrow capital. Both of us want to successfully complete our investing goals. One West’s intentions are to have you as a valued client for life, earning your trust every step of the way. We hope you have the same regard for us. That said, we understand that investing does not occur in a vacuum. There are many moving parts and people involved in the process. Some of these parts and people we can control and some we cannot. It is important that we both remain flexible when unanticipated situations come our way.
We lend to projects in these Missouri Counties:
- St. Louis City
- St. Louis County
- St. Charles County
- Jefferson County
- Franklin County
- Lincoln County
- Warren County
What is a St. Louis Hard Money Lender?
The real estate investment market in St. Louis can be fast-moving. When looking to purchase real estate investment property, sometimes securing the best deal requires you to act fast and close quickly. When you’re looking for a loan or a lender to assist you in financing your St. Louis property purchase, it may not be reasonable for you to wait for a lengthy, traditional loan. On top of that, if you’re using the funding to fix and flip a home in order to add value to the property, a traditional lender might not loan you the money on a property that requires repairs. Hard money financing could be your solution, and we know the perfect hard money lender, so come visit us at 12225 Clayton Rd, St. Louis, MO 63131.
Many veteran real estate investors in St. Louis use hard money lenders and hard money loans to purchase property and fund fix-and-flips. “Hard money lender” is a term that refers to non-bank lending, instead of lending via a private person or organization. Hard money lenders use criteria they are comfortable with when deciding whether or not to lend someone money. In most cases, a hard money lender will use the value of the St. Louis property to determine the loan amount and rates. When it comes to St. Louis hard money lending, there is a:
- Borrower (Real estate investor)
- Real Estate Investment Property
The lender provides funding under a contract which can take the form of a promissory note. This note will define the amount of the private money loan, the interest rate, and the term length of the loan, among other things. The lender also gets a lien against the St. Louis real estate investment property which acts as security or collateral for the loan. The borrower then makes regular payments to the lender and repays the private loan according to the agreed-upon terms.