St. Louis Hard Money Lender - FAQ

Here’s what you need to know about funding opportunities with


What is a hard money loan?

Hard money, also known as a rehab loan or bridge loan, is the term used for loans funded by private parties who want a safe and high return. We work directly with investors who use our funds to purchase properties to fix and sell for profit in a very short period of time.

Real estate investors use hard money when they are unable to obtain financing from conventional sources for a vriety of reasons. Banks won't fund these properties because of their condition or because full-time investors aren’t typical W-2 employees. 

4MC offers both “Purchase Money” and “Fix-Up Money,” but not owner-occupied or commercial loans.

Do I have to pre-qualify?

It’s best if you do because it saves you time when you have a property you want to purchase.

How do I get pre-qualified for a hard money loan with 4MC?

The process is simple. Click here and complete the appropriate application.

Fill out the required information completely!

Available funds may include cash on-hand, credit lines, maturing CDs, and stock accounts with borrowing power. Not considered would be small-balance credit cards, IRAs, retirement accounts, and other people's money, unless they plan on being a co-borrower.

If you have a specific property you want a loan for, make sure to answer ‘yes’ to the question "Do you have a property under contract?" on the Apply Now page, which takes you through a faster process.

Once you submit an application, you'll get an email with your next steps. Upon approval, you will be given a Pre-Approval Letter. This letter is usually treated the same as cash.

What is 4MC looking for when considering my application?

4MC wants you to have a positive outcome on your transaction. We will review your ability to repay, credit-to-debt ratio, cash reserves, the area in which you plan to invest, and your experience level. 

Experience is good, but not required. 4MC is constantly finding and helping first-time investors, so apply today!

These are business loans. We want you to have a good experience so you’ll consider us again in the future.

A note on the market: You must be familiar with the area you plan to invest in and understand how to successfully figure the future value of the property as well as the cost of repairs. Not knowing or understanding these concepts has been the biggest and most common mistake, as well as the most costly one, that we've seen over our many years in the business.

Here’s an example of understanding your market: How much have prices decreased/increased? Have you factored in holding time and costs into your offer? How many properties have sold in the area recently? What percentages are pending, sold, expired, and active? Why did the sold properties sell? What price will you get when you sell? What price is required for you to generate a profit?

If you don't know the answers to these questions, do your homework or get some training to learn how to get the answers to these questions.

Does 4MC provide a Pre-Approval Letter?

Yes! After reviewing the application, a general pre-approval letter will be issued to those who qualify. However, this is not a commitment to fund any transaction at any certain amount. Nor is it a "proof of funds" letter.

Your approval amount will be based on your experience, your ability to make monthly payments, and largely on your deal.

If you don’t qualify, we’ll contact you and make suggestions on possible solutions to your deal’s problems.

If you do not hear back from us within 48 to 72 hours, you are welcome to call our office.

What states do you fund in?

We only provide hard money loans in Missouri.

How long does it take to close the loan?

We can close in as little as 5 business days, assuming we have all documentation signed correctly and returned in a timely manner.

Quick closings are possible only with your help! We need all the documentation, escrow instructions, proof of insurance, clean preliminary title report, and all docs signed correctly and in a timely manner for us to close quickly for you. Speed for your transaction is highly dependent on your response time.

Each transaction is handled on a case-by-case scenario. If there is a special requirement, we may be able to accommodate you.

What types of property do you fund?

4MC specializes in non-owner occupied residential, single-family properties from 1-4 units. Our programs range from a standard “fix and flip” to “buy and hold” rentals to new construction. However, if you have small apartment buildings, please discuss them with us. 

What if I have a bad credit score?

We are not a credit-based lending program; our loan commitment is based on the “ARV” (After Repair Value).

Will you roll costs into your loan?

Yes, we generally fund the costs of the loan, however this is deal-specific.

Can I live in the house during the course of the loan?

No. 4MC only funds on non-owner occupied properties. You will be signing loan docs stating that you will not be living in the property. 

Are there prepayment penalties?

Sometimes. There is a cost to structuring new loans, and we may require a portion of the interest to be fully earned.

Can 4MC value a property for me?

No. Knowing how to estimate property value properly is a critical skill for you as an investor. Once you have a deal under contract, we will quickly comp out the property, and we’ll let you know if we disagree with your assessment.

What if I have a foreclosure on my record?

Your foreclosure record alone will not dictate your application outcome. Lack of income and/or reserves are the most common reasons people are denied. If this is your situation, seek out a partner who may have the cash reserves but not the time or energy to find deals.

I've been DENIED! What now?

In certain cases, 4MC errs on the side of caution. Lack of experience, no past relationship, and/or marginal real estate deals may keep you from an approval.

If this is your situation, we recommend four options:

  1. Cash is king. While lack of cash is part of the reason you need access to hard money, 4MC must consider your liquidity and ability to pay as promised. We are responsible for our private investors' money and we do everything in our power to keep both sides profitable and financially healthy. You can increase liquidity and cash availability via partnerships, credit lines, or saving more money.

  2. Do your homework. Why make costly mistakes when you can learn from those who have already made them? Talk to other successful investors in your area and see how they learned the trade. 

  3. Find a partner. If you find yourself without money or experience, evaluate what skills you have that would be useful to another investor and look for  someone to partner with.

  4. Get involved. Check out your local investment club and stay current on trends and the market. Investment clubs are invaluable for networking and keeping your finger on the pulse of the market. Check out our list of real estate investor clubs for one in your area.

Do you fund trustee sales?



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