We strive to be easy to work with and flexible for our St. Louis investors. Our underwriting is focused primarily on the investment property and the potential upside of the deal. We also look at your real estate experience and ability to make the monthly payments on your loan. We are investing private funds in you and your project.
Borrower qualifications and documents can include:
- Loan Application: Application fee of a few hundred dollars may apply
- Credit Score: 550+
- Bank Statements: Two to three months’ of personal bank statements
- List of Past Projects: Documentation of prior real estate experience
- Purchase Contract: Signed contract, including purchase price and property address
- Property Inspection
- Scope of Rehab Work with Budget: Required for all investors who plan on rehabbing a property
- Contractor Bids
- We must close in your LLC – we can’t loan to individuals
Borrowers with extensive real estate experience and proof of completed fix-and-flips usually receive a lower loan rate than new investors without a track record of investment deals.
Our Minimum and Maximum Loan Amounts
Our sweet spot for private lending is St. Louis area property between $50k and $175k, although we have gone lower and higher for certain loans.
We will lend you up to 90% LTV as-is and a maximum of 70% ARV (After Repair Value). All borrowers must have some equity in the deal.
The Exit Strategy
It’s important for you as a borrower and us the lender to have more than one clear exit strategy for your loan. Possible exits are 1) flipping the property and paying off the hard money loan 2) rehabbing and selling to pay off the loan and 3) refinancing into a conventional long-term loan.
Interest Rates, Terms, & Fees
Our rates today are generally 12% to 16%. The loans are interest only, with the principal due at the end of the term. Terms on hard money loans are generally short and vary from 3 months to 9 months with potential for extensions.
Like most lenders, we charge origination fees, also known as points, to help mitigate our risk, cover administrative expenses and pay any referral fees. We typically charge between 3 - 6 points (or 3-6%). Often, these fees may be wrapped into the loan amount.
In summary -
- Lending Rate: 12% to 16%
- Term: 3 months to 9 months (with possible extensions)
- LTV: Up to 90%
- ARV: Up to 75%
- Points: 3% to 6%
- Down Payment: 10% or more of LTV
- Funding Time: 10 to 16 days
How Long Does it Take To Fund?
We can usually close quickly, within 10 to 16 days. We work with you to get the deal completed smoothly and quickly. The sooner we get all of your paperwork, the sooner we can make a decision on the deal. This, of course, can vary for trickier deals. But generally, we can help you close quickly.