We want all of our borrowers to have some experience in real estate/ construction. There are 3 types of local, St. Louis borrowers we are looking for:
- Landlords who are looking to buy a house at a discount, fix up the property, and refinance the house out with a long term loan in 6 months or less.
- Rehabbers who do most if not all the work themselves and have a clear vision for which areas they want to work in OR rehabbers who have a full-time job but use their own funds to pay for the rehab part of the project and act as the general contractor overseeing the project.
- Wholesalers who need to close on a house before shopping it or feel they’ll get more money closing on a property, cleaning it out, and then listing it on the MLS.
- First Lien position only
- The borrower must be pre-approved before we will look at a property.
- The property must be in the St. Louis metro area – in Missouri. We do not lend in Illinois.
- Typically we just lend on single-family homes but we will consider 2 – 4 families and townhouses/ condos.
- We will lend purchase and/ or rehab, if the numbers make sense.
- We will lend up to 70% of a conservative ARV if borrowers want to borrower purchase and rehab funds. For what we will lend on purchase – the formula we use is the ARV (After Repair Value) times 70% minus repairs. This equals the maximum amount we will lend towards purchase
- 6 Month, Interest Only Loan
- 12% Annualized Interest Rate
- 3% Origination Fee charged on the Backend
- No Appraisal Required
- No Pre-Payment Penalty