Private real estate financing means obtaining a short-term loan via a private company or individual person in order to buy, carry out upgrades on or refinance a property or home. As opposed to loans from banks, Daytona Beach private mortgage loans close fast, are easy to qualify for and offered to self-employed individuals.

That is great for real estate investors since even a person with poor credit can opt for private money for a real estate loan so long as he has a promising deal, he has sufficient cash for a downpayment, he has demonstrated himself competent in prior real estate investments, and he can show a good exit strategy. And with fast closings of just 2 weeks, private real estate mortgages in Daytona Beach may very well be the perfect solution for real estate investors.

Often, borrowers pay a visit to Daytona Beach private mortgage lenders to fund their real estate ventures when:

1. They're in search of money to renovate a home and offer it for sale for a higher price or to rent it out for more money.

   As an illustration, one of our customers held a two-family rental. He held a great deal of equity in the house and the rent payments brought in routine monthly income. A number of choice home improvements would allow him to boost his rental prices, but with a lower credit score of 520, it was extremely likely for a bank to turn down the mortgage application. So he turned to Read Rock Capital for a cash-out refinance and got financing at 65% LTV.

2. They need to combine financial debts.

   Multiple outstanding debts with a range of interest rates are incredibly overwhelming and tough to manage. Due to this, lots of people borrow against their home equity to merge their outstanding debts into one loan payment.

3. They want to make use of the equity available in a current home and property to work on an additional project.

   As an example, one of Island View's past clients in Hawaii had a home appraised at more than one million bucks. His plans to sell the house didn't work out and he ultimately had to be satisfied with leasing the house, with an option to purchase it at a future time. The cash that stemmed from the rental payments covered his continuing mortgage bill, home owner's insurance, and property taxes. The tenant additionally gave $200k in the form of a non-refundable downpayment as part of signing the 3-year agreement. These assurances meant that he no longer needed to be concerned with the property's ongoing financial obligations, and thus, when a new investment opportunity surfaced, he reached out to Read Rock Capital and received a private mortgage loan at 70% LTV. This gave him more than enough money to put towards a deposit or his next investment, but additionally helped him repay the existing mortgage.

4. They need help to satisfy the balloon payment for the current loan.

   If someone is unable to make a balloon payment thanks to unexpected factors, he can make an effort to refinance the loan with a new lender. A refinance can help the borrower avoid missing the due date for the balloon payment and avoid fines.

Hoping to connect with a private mortgage lender in Daytona Beach to talk about loan programs for your next real estate investment? Complete the contact form or call us to discuss your property or properties.