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0 Real estate investors in St. Louis often require short-term financing to bridge the gap between property acquisition and long-term funding or sale. This type of financing is commonly referred to as an interim loan. In markets like St. Louis, where speed and market knowledge are essential, interim loans serve a practical purpose for experienced property investors.
Understanding how interim loans St. Louis works can help investors make informed decisions and avoid costly missteps.
What Are Interim Loans?
Interim loans, also known as bridge loans or short-term financing, are typically used by real estate investors to purchase a property quickly. These loans are not intended for long-term holding but rather to cover the purchase until the investor can secure permanent financing, sell the property, or complete renovations and refinance.
These loans are usually collateral-based, meaning the property itself is the main factor considered by the lender—not the borrower’s credit score or income.
How Interim Loans Work in St. Louis
In St. Louis, interim loans are often provided by private hard money lenders who specialize in the local real estate market. These lenders focus on the value of the property and the potential profit of the investment.
One such example is Westre Financial Group, a well-established private lender that has issued over 2,650 loans totaling more than $143 million since 2001. Their model provides a clear view into how interim loans function in this market.
Key Elements of the Loan Process:
Application Submission:
Investors begin by completing a borrower application. If they need a pre-approval letter, it can be provided early in the process.
Property Identification and Evaluation:
Once a property is identified, the investor submits a property-specific application. They must also provide proof of funds for renovation, as this is not included in the loan.
On-Site Property Visit:
The lender, in this case Brad from Westre Financial Group, visits the property the next day. During this visit, he evaluates four core elements:
Purchase price
Renovation cost
Soft charges
Anticipated selling price (based on comparable sales)
Loan Approval:
If the property is deemed to offer a reasonable profit potential, the loan is approved. The lender funds 100% of the purchase price, and closing can occur as soon as the title company is ready.
Unique Approach by Local Lenders
Unlike many lenders that offer a variety of financial products, certain private lenders in St. Louis specialize in a focused lending strategy. Westre Financial Group, for example, does not offer cash-out refinancing or loans in flood zones. They also do not fund renovations. Their model is clear: if an investor does not have the capital for rehab, they may not be ready to enter the business.
There are no unnecessary fees—no charges for credit checks, appraisals, processing, or applications. The only cost is a 2% origination fee, which is added to the loan itself. There is also no prepayment penalty, giving borrowers flexibility.
All loans are processed in-house, contributing to a faster turnaround and tighter control over the lending process.
Geographical Focus Matters
For interim loans in St. Louis, local knowledge is critical. Lenders like Westre Financial Group operate only in St. Louis City and County. This local focus allows them to evaluate property potential accurately and provide insight into neighborhood trends, zoning issues, and resale value.
This level of specialization cannot be matched by out-of-state lenders or those with broader national portfolios. It gives local borrowers an edge when time and accuracy matter most.
Who Benefits from Interim Loans?
Interim loans are not suitable for every type of buyer. These loans are ideal for experienced real estate investors who:
Move quickly on properties
Can handle renovation costs independently
Need short-term financing while they stabilize, improve, or prepare the property for sale or long-term hold
New investors without capital for renovations may find it challenging to secure this type of loan, especially with private lenders who prioritize borrower readiness and deal profitability.
Conclusion
Interim loans in St. Louis offer real estate investors a fast and efficient way to fund property purchases without relying on traditional bank financing. With the right property, proper renovation funding, and a sound investment plan, these loans can be the key to securing profitable deals.
Westre Financial Group stands out by offering 100% financing on the purchase price, no junk fees, and decades of local real estate experience. For investors focused on the St. Louis market, they remain a trusted name in interim financing.
