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.
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).
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.
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.
Attn: Tim Estepp
One West Associates, Inc.
12225 Clayton Road
St. Louis, MO 63131
Attn: Tim Estepp
One West Associates, Inc.
12225 Clayton Road
St. Louis, MO 63131
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.
10333 Clayton Road
St. Louis, MO 63131
Two to three days before closing be sure to request a HUD settlement statement from the title company in order to verify the exact amount of money you need to close. You will need to either wire the funds or deliver a cashier’s check in the amount you need to close. No personal checks are accepted. This is important and needs to be addressed before the actual closing date, so no delays arise.
We only lend in these Missouri counties.
Saint Louis City
Saint Louis County
Saint Charles County
No. We only lend money to an entity such as an LLC. You must personally guarantee the loan. If you have a spouse they must sign a marital waiver only if they are not a partner of the LLC.
No. Our loans are intended for investors who do not reside on the property.
Common sense underwriting is always our approach. We want to know how much experience the borrower has when it comes to not only buying and selling homes but managing a rehab too. If the borrower has minimal construction experience, then we expect the proposed rehab to be of a reasonable size and scope. We look at how much cash the borrower is working with today. We do not lend borrowers 100% of the money needed to purchase and rehab a single project. A borrower must have cash in the deal too. We visit the property to evaluate the area, the home, and the size of the construction project. Overall, the deal must make sense when it comes to the investor risk and exposure a property presents in relationship to the profit that can be made.
Another item we look at includes a flood certificate determination. We determine if a property is in a flood plain. If so, a flood policy must be purchased before the closing. If a property sits in a flood zone which requires a borrower to buy a flood policy in order to secure financing, it can negatively affect the value of the property.
We review an entity’s certificate of good standing. This document demonstrates the entity was legally formed and has been properly maintained.
Our application requires that you submit each borrower’s driver license, 3 months of (personal) bank statements, and your most recent tax return.
Absolutely. We do not mind sharing the names of professionals that we have used before. We have contacts that range from tradesmen to local banks and just about anyone else you may need. It is important to build out a reliable team that you can use over and over. Always be on the lookout for great people who can help you execute your investing plan.
Hard money loans are a form of private money financing that is used to purchase investment real estate that may not conform to conventional underwriting standards. Funds for hard money loans generally come from private individuals or from mortgage pool funds run by fund managers that raise capital from multiple individuals.
Hard money lenders can approve and fund a loan much more quickly than traditional lenders such as banks. They do not require as much documentation because they are primarily concerned about the value of the real estate being used as collateral versus the credit and income of the borrower. Hard money loans often provide more leverage than conventional loans, allowing borrowers to rely less on their own or outside investors’ capital.
Hard money loans are offered for a variety of investment purposes including:
Fix and flip loans that allow you to acquire, renovate and sell real estate.
Bridge loans which help you close quickly on time-sensitive investment loans.
Cash-out loans that allow you to refinance real estate you already own to obtain capital for another purpose.
Construction loans whereby a borrower may be able to finance a portion of the site acquisition and much or all the construction cost.
First and foremost, choose a lender that is experienced with the type of loan that is being requested. The lender should understand the collateral and strategy and be able to structure a deal that offers you the opportunity to have a profitable outcome. A good hard money lender can often add value to the investment decisions that you must make. Next, verify that your lender has the capacity to make the loan and the capability of executing it in the time frame required. Finally, make sure that your lender has a reputation of integrity and conducts its business with honesty and transparency.
Currently, we are only lending in Missouri. More specifically, the St. Louis metro area.
Yes. Borrowers must have a minimum credit score of 600. Anyone with a credit score less than 600 will be considered on a case-by-case basis.
Yes. One West loans to both full-time real estate entrepreneurs as well as employed individuals who are seeking to supplement their income.
Yes, we can accept almost every type of legal entity as a borrower. The principal manager or managers will be required to personally guarantee the loan if there is an entity borrower.
No, but we do have a minimum origination fee of $2,000 plus a $750 application fee.
Please fill out the application completely. The application will only take a few minutes. Someone from One West will contact you quickly, usually within the same day.
To obtain a prequalification letter, email email@example.com.
No, applying is free. After you submit your application and provide us with the necessary information, we will send you a preliminary term sheet.
No, we require a One West representative will value the property subject to the rehab or construction budget. This evaluation can be a valuable tool when you either sell the property or refinance into a long-term loan.
This depends on how quickly we receive all the necessary information about the property, and the borrower. Usually, once we have your information back, and the title is clear, we can close as quickly as one day. Generally, the entire process takes on average two weeks from application to close.
In addition to the online application, we will need:
Ideally, at least one Fix & Flip project completed during the past 36 months; all other experiences will be evaluated on a case-by-case basis.
Formation documents if the borrower is an entity:
Certificate of Good Standing
Articles of Organization/Formation
Operating Agreement if existing
Individual borrowers must have filed the last two years of Federal income tax returns.
Entity borrowers must have filed the last two years of Federal income tax returns (where applicable)
To qualify, all members must have filed federal income tax returns for the past two years and at least one member has a credit score of 620 or above
Copy of driver’s license of individual borrower or principals of entity borrower
A credit report (not just score) within the past 90 days for an individual borrower or at least one principal of entity borrower can be submitted for verification.
Typically, our loans are for a term of 6 to 12 months with possible extensions available subject to One West approval. Interest rates generally start at 12% and there will be loan fees of 2-3% of the loan amount. You will also have to pay the cost of our application/processing fee of $750.
Yes. At a minimum, the property will be inspected by a One West representative.
Yes, One West requires hazard insurance on the subject property prior to closing. We work with a local insurance broker and can help you find the appropriate hazard insurance policy quickly and at competitive rates.
We service our loans here at One West. Our pledge is that you will be treated courteously, and your loan will be serviced with accuracy and professionalism.
Yes, we require monthly payments. Typically, those are interest only payments.
At your request, we will inspect the property to determine how much of the scheduled work has been completed. Once we receive a report, we process your draw and fund the eligible amount to you by your choice of check, ACH, or wire transfer. Generally, the entire draw process takes three to five business days from request to funding.
Our 6-to-12-month loan program, which can be extended at the lender’s discretion (if the loan is in good standing). Extensions to the 12-loan program can be considered on a case-by-case basis. Typically, there is no fee for an extension, but it is the lender’s decision.
Just email our loan servicing department at firstname.lastname@example.org and we will provide you, your mortgage professional or your title company with a payoff statement, usually within 48 hours.
Absolutely! We pay for referrals – please inquire for more information.
Our business is built on repeat customers. If you have the experience and financial capability of handling multiple properties, we would like to be your lending partner!