Frequently Asked Questions

Below we have compiled a list of the common questions surrounding using private funding for real estate projects. If your question is not listed below, please contact us so we can understand your particular situation better and help you with a solution.

What is the cost of financing?
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  • 4 Points Loan Fee
  • 1.5% Interest Only Payments
  • 2 Points Closing Fee
  • 2% Renewal Fee After 6 Months
How do I calculate the loan fee's and interest?
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If your loan is $100,000...

- 4 Point Loan Fee = $4,000

- 1.5% Interest = $1,500/month

- 2 Points Closing Fee = $2,000

- 2 Point Renewal Fee (After 6 Months) = $2,000

What is the typical length of each loan?
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Loan lengths will be on a case by case basis. The typical loan will be 6 months with a 3 month extension and possibly another 3 month extention. NO LOAN WILL EXTENDED PAST 1 YEAR. 

What are other fee's associated with the loan?
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Loan fee's will be on a case by case basis. Typical fee's associated with each loan may include the following.

  • appraisal fee ($495)
  • wire fee ($35)
  • recording fee's ($54-$75)
  • construction disbursing fee ($495-$1,550)

* Loan fee's may vary depending on property

What items will I need before the deal is funded?
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Before funding will occur we will need the following documents:

  • Insurance with St Louis Private Lending, LLC listed as the Loss Payee
  • Receipt with 6 months of insurance paid
  • Cost breakdown of rehab repairs
  • Exit Strategy
  • Promissory Note notarized (done at closing)
  • Mortgage Deed of Trust notarized (done at closing)
Do you lend the fix up money?
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Yes. Repair funds are approved on a case by case basis. We prefer construction costs that will be under $50,000.

What is your loan to value ratio?
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We typically lend at 75% or less of the after repair value.

What type of properties do you lend on?
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We will lend on the following properties:

  • rehab projects
  • rental properties
  • wholesale deals
  • 2-4 multi families
  • transactional funding

We do not currently lend on commercial buildings.

What documents will you need to get my first deal approved?
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In order to get approved for a deal we will need the following:

  • business operating agreement
  • social security number
  • business EIN number
  • property address
  • amount needed to purchase
  • exit strategy
  • construction cost breakdown
  • amount needed for construction funds
  • signed purchase contract
  • Retail value / projected market rents
What is the minimum After Repair Value You Will Lend On?
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We typically will not fund a deal that is not worth at least $125,000 when completed. 

What Is Your Maximum Loan Amount?
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We typically will not exceed a loan higher than $250,000. Are loans are made on a case by case basis.

What Mortgage Position Will You Take?
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We only make loans that will be in 1st position. We will not make a loan in the 2nd or 3rd position.

Will there be a credit check?
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Typically No. Loans are "deal" approved not credit approved. The only time we would do a credit check is if the exit strategy is a buy & hold where the borrower will be refinancing the loan with a bank. 

How Quickly Can You Fund Once Approved?
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Do You Provide a Proof of Funds Letter?
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Once approved for a loan we will provide a proof of funds letter. We do not provide a blanket proof of funds letter.