Private real estate financing involves finding a short-term mortgage loan via a private company or individual person with the intention to buy, carry out improvements on or refinance a property. Whereas standard lending institutions, for example, banks necessitate a prolonged, drawn out application process and are likely to think twice about lending money to a self-employed client, private mortgage loans in close fast and have minimal eligibility criteria.

That's why, while it's possible you don't have good credit, having a promising real estate opportunity, a significant down payment, prior experience in real estate, and a clear-cut exit strategy are a great deal more crucial when qualifying for private money for a real estate loan. What's more, the fast closing Homer private real estate mortgages provide you with funding right away, letting you close within two to three weeks.

Usually, clients get in touch with a private mortgage lender in Homer when:

1. They're looking for money to repair a property or home and offer it for sale for a much higher price point or to up the lease amount for tenants.

   Real example: one of our clients operated a two-family rental. He already retained a lot of equity available in the house and the rent payments brought in a steady cash flow. A number of choice home renovations would help him boost the cost of rent, but with a low credit score of 520, it was very certain for a bank to turn down the mortgage request. After he got into contact with Read Rock Capital for a mortgage, we were pleased to do a cash-out refinance at 65% of the home's assessed value.

2. They would like to combine their debts into one payment.

   Many of us think it is stressful to deal with countless payments each month. As a result, some individuals borrow from their home's equity to merge each of their debts into a single mortgage loan.

3. They would like to utilize the existing equity available in a current property to do an additional project.

   By way of example, one of our previous customers located in Hawaii had a house valued in excess of one million dollars. When he was not able to procure a buyer for the home, he signed a lease-option-to-buy arrangement with somebody. The lease payouts served to meet his current mortgage, property taxes and insurance. The person furthermore agreed to pay him $200,000 in the form of a down payment for the three year lease contract. With these sureties handling the property's monthly payments on a regular basis, he approached Read Rock Capital to get a 70% loan-to-value private mortgage loan to help with his next real estate investment. This means that he was able to make his deposit for his next property, and also pay down his present mortgage.

4. They have a previous loan and cannot pay the pending balloon payment.

   If an unforeseen incident prevents a person from making his balloon payment deadline, he could seek out a new mortgage company to refinance. A refinance can help the borrower avoid missing the due date for the balloon payment and steer clear of any fines.

Interested in discussing mortgage programs with a private mortgage lender in Homer? Complete the contact form or call us to discuss your property.