About REI Funding
REI Funding is a Chesterfield, MO based hard money lender providing funding throughout St Louis. Their lending focus is mainly on fix-and-flip loans. They provide loan amounts ranging from $50,000 to $500,000 with a maximum LTV of 75%. They do not require borrowers to have a minimum FICO score to obtain a loan. They will consider different lending requests but generally focus on single family units and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: St Louis
Lending Guidelines for REI Funding
Below are the general loan guidelines published on the REI Funding website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $50,000 - $500,000
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 75%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: NO
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by REI Funding.
Loan Example 1
REI Funding makes a fix-and-flip loan to Robyn for a rehab project in St Louis, MO, on a house that costs $390,000. The lender agrees to issue a loan with a 60% loan to value (LTV) so they will loan $234,000 on the property. The interest rate on the note is 8% for a length of 6 months and the lender requires a two point origination fee at the closing. The interest payments are to be paid monthly and the principle will be repaid after the sale of the property.
Therefore, the borrower will be required to contribute a $156,000 down payment plus pay a $4,680 origination fee. The monthly interest-only payments will then total $1,560 to REI Funding. If Robyn accomplishes her goal of a $507,000 sales price when the loan expires, she would make a total profit of $102,960 after re-paying the principle and subtracting the money she paid at closing, the origination fee, and the total interest payments.
Loan Example 2
REI Funding issues a hard money loan to Curtis for a rehab project in St Louis, MO. The loan includes the following:
$320,000 purchase price
80% loan-to-value (LTV)
6 month term
8% rate of interest
1% origination fee
After the rehab project is finished, if Curtis sells the project for $416,000, the outcome would be the following:
$416,000 sales price
- $256,000 note principle (80% LTV)
- $64,000 down payment (20% on 80% LTV)
- $2,560 origination fee (1% of the $256,000 principle amount)
- $10,240 interest payments (6 months x 8% interest)
= $83,200 total profit (does not include taxes or renovation costs)
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