Private real estate financing can help investors buy, fix up or refinance a home or property utilizing a short-term mortgage loan from a privately owned business or an individual. Brooklyn Park private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are available to self-employed borrowers.

That is great news for investors because a person with poor credit can obtain a private money for a real estate loan as long as he has a promising deal, he has plenty of cash for a down payment, he has demonstrated himself able in past real estate ventures, and he has a sensible exit strategy. Combined with fast closings of only two weeks, private real estate mortgages in Brooklyn Park are an ideal alternative for ambitious real estate investors.

Most real estate professionals work with Brooklyn Park private mortgage lenders when:

1. A remodeling job or update can help to sell the home for a higher price point or ask for extra rent.

   For instance, there was a client who owned a two-unit rental property. At the time, he retained a considerable amount of equity available in the building and the rent delivered steady revenue. A few select home renovations would undoubtedly allow him to raise his rents, but having a low credit score of 520, it was extremely likely that a bank would turn down his mortgage application. Thus, he came to Read Rock Capital to do a cash-out refinance and got a loan at 65% LTV.

2. They need to consolidate their debts.

   Countless debts with a variety of interest rates can be extremely overwhelming and difficult to keep tabs on. This is the reason many people choose to take advantage of the equity in their home to merge each of their debts into one private loan having a lone monthly payment.

3. They wish to release the existing equity in one property and use it to acquire another one.

   One of our borrowers in Hawaii had a property worth over $1,000,000. Because it was hard for him to find a buyer for the property, he had a person that was ready to lease it with an option to purchase it. The money that stemmed from the lease contract took care of his regular mortgage payment, home owner's insurance, and property taxes. The tenant also gave $200k in the form of a non-refundable advance payment when he signed the 3 year contract. With these sureties covering the property's bills on an ongoing basis, he called Read Rock Capital to obtain a seventy percent loan-to-value private mortgage loan for his upcoming real estate investment. This allowed him to pay an advance on the deposit for the new investment, and also repay his existing mortgage.

4. The balloon payment for an existing loan is owed soon and they are unable to handle it.

   If an unexpected incident stops someone from making his balloon payment deadline, he can find a new loan provider to refinance. A cash-out refinance can help the person complete the balloon payment and evade penalty.

Wanting to meet a private mortgage lender in Brooklyn Park to discuss funding options for your upcoming project? Enter your info into the contact form on this page or give us a call to discuss the property or properties you have in mind.