Wholesale hard money lenders in St. Louis play a crucial role in the real estate investment market by providing fast, collateral-based loans. Unlike traditional lenders, wholesale hard money lenders focus on property value rather than borrower creditworthiness. This type of financing is ideal for real estate investors looking to acquire properties quickly without the lengthy approval process associated with conventional loans.
Westre Financial Group is one of the most experienced hard money lenders in St. Louis, specializing in funding 100% of the purchase price for real estate investments. Understanding how these loans work can help investors streamline the process and secure the financing they need.
What is a Wholesale Hard Money Lender?
A wholesale hard money lender provides loans based on the collateral value of a property rather than the borrower’s financial history. This means that approval is primarily determined by whether the property meets specific lending criteria.
Unlike traditional lenders that require extensive credit checks, income verification, and a lengthy underwriting process, wholesale hard money lenders focus on:
- The purchase price of the property
- Estimated renovation costs (covered by the investor)
- Soft charges and additional closing costs
- The anticipated resale value based on comparable sales in the area
Since these loans are asset-based, they can be processed much faster than conventional loans, often allowing real estate investors to close deals in days rather than weeks.
How Wholesale Hard Money Lenders in St. Louis Operate
1. Property-Based Lending Approach
The primary factor that wholesale hard money lenders consider is the property itself. If the investment makes financial sense, the loan is approved. Borrowers are not required to provide proof of income or undergo credit checks.
2. Loan Application Process
The loan process begins with the submission of a Borrower Application. If a pre-approval letter is needed, it is provided at this stage. Once an investor identifies a property, they submit a Loan Request Application, including proof of funds for renovations.
3. Property Evaluation
The lender evaluates the property based on several factors, including:
- Market value and location
- Purchase price and projected renovation costs
- Anticipated after-repair value (ARV)
- Overall profitability of the investment
At Westre Financial Group, Brad Westre personally visits the property to assess its viability. If the property meets lending criteria, the loan is approved.
4. Quick Loan Approvals and Funding
Since wholesale hard money lenders base their decisions on property value rather than borrower credit, the approval process is significantly faster than traditional banks. Investors can expect funding as soon as the title company finalizes the necessary paperwork.
This speed is a major advantage for real estate investors who need to secure financing quickly to capitalize on time-sensitive deals.
5. Loan Terms and Fees
Westre Financial Group provides 100% financing for the purchase price, ensuring investors can acquire properties without large upfront capital. Unlike other lenders, there are no junk fees, such as credit check fees, processing fees, or appraisal costs.
The only fee is a 2% origination fee, which is added to the loan amount. There are also no prepayment penalties, allowing investors to repay the loan early without incurring extra charges.
6. Restrictions and Loan Exclusions
Wholesale hard money lenders have specific restrictions on the types of loans they offer. These restrictions ensure that the loans provided align with the company’s expertise and risk management policies.
7. Closing the Loan and Moving Forward
Once the title company finalizes the necessary paperwork, the loan is funded, and the investor can close the deal. Since wholesale hard money loans are designed for fast transactions, the entire process—from application to funding—can be completed in a matter of days.
After closing, the investor can proceed with property renovations, marketing the property for resale, or preparing it for rental. Since there are no prepayment penalties, investors have the flexibility to repay the loan early once they sell or refinance the property.
Why Work With a Wholesale Hard Money Lender in St. Louis?
Wholesale hard money lenders St. Louis offer several advantages for real estate investors, including:
- Speed – Quick approvals and funding enable investors to secure deals without delays.
- Flexible Criteria – No credit checks or income verification are required.
- 100% Purchase Price Financing – Investors do not need large upfront capital.
- Transparent Fee Structure – No unnecessary junk fees, only a 2% origination fee.
- Local Market Expertise – Lenders like Westre Financial Group have extensive experience in St. Louis real estate.
Conclusion
For real estate investors in St. Louis, working with a wholesale hard money lender can provide the speed and flexibility needed to acquire investment properties efficiently. With a focus on property value rather than borrower creditworthiness, these loans enable investors to bypass traditional banking delays and secure funding quickly.
Westre Financial Group has been a trusted hard money lenders in St. Louis City and County for over two decades, funding over 2650 loans totaling $143 million. Investors looking for fast, reliable funding can benefit from their streamlined loan process and local expertise.
To learn more or begin the application process, visit Westre Financial Group’s website or contact their team today.
