Private real estate financing entails getting a short-term mortgage loan from a privately owned firm or individual with the intention to purchase, perform improvements on or refinance a property or home. Although traditional lenders, for example, banks have a lengthy, time consuming application process and are likely to think twice about giving money to a self-employed customer, private mortgage loans in Lewistown close fast and have minimal eligibility criteria.

That's why, while you might don't have very good credit, having a real estate opportunity with good potential, a substantial down payment, prior experience in real estate, and a well-defined exit strategy are much more crucial in terms of being approved for private money for a real estate loan. Besides, if you need a fast closing, there are no better options than Lewistown private real estate mortgages.

Primarily, clients count on Lewistown private mortgage lenders to loan money for their projects when:

1. A remodeling job or renovation will make it possible to market the home for a much higher price point or get significantly more rent.

   To illustrate, one of our customers had a twin-home / duplex. He had plenty of equity available in the property and the rent checks brought in regular monthly income. A few choice home renovations would undoubtedly allow him to raise his rental prices, but since he had a bad credit score of 520, it was extremely probable that a bank would turn down the mortgage application. Shortly after he got into contact with Read Rock Capital to obtain a mortgage, we were pleased to do a cash-out refinance at 65% of the property's market value.

2. They wish to combine their financial debts.

   Countless unsecured debts with a variety of lending rates are very overwhelming and hard to keep an eye on. In order to put together a more reasonable situation, people combine all their unsecured debts into one single mortgage loan with one monthly payment.

3. They wish to use their property's equity for some other purchase.

   As an illustration, a client located in Hawaii had a home appraised at $1,200,000. When he was not able to find a buyer for his property, he agreed to a lease-option-to-buy contract with somebody. The rental agreement payouts served to meet his existing mortgage expenses, taxes and insurance. The renter additionally gave $200k in the form of a non-refundable downpayment when he signed the three year lease contract. With these sureties to cover the house's foreseeable expenses, he came across a new investment opportunity and contacted Read Rock Capital for a private mortgage loan nearly seventy percent of the property's estimated value. The loan helped him pay for a new investment property as well as pay down his original mortgage.

4. The balloon payment for a prior mortgage is owed soon and they are not able to handle it.

   If a borrower is unable to meet a balloon payment as a result of unexpected causes, he can try to refinance his loan with a different mortgage company. Refinancing ahead of the term date helps the borrower to make the due date for the balloon payment and stay clear of fines associated with missing the balloon payment.

Planning to discuss your investment options with a private mortgage lender in Lewistown? Submit the contact form on this page or get in touch with us via phone and let's talk about your project.