Private real estate financing involves getting a short-term mortgage loan through a private business or individual to be able to purchase, perform improvements on or refinance a property. Although standard lending institutions like banks will require an extended, time consuming application process and in all likelihood will think twice about giving money to a self-employed borrower, private mortgage loans in Lynn close fast and are easy qualifying.

That means that even if you don't have a very good credit score, there is still a high likelihood of receiving private money for a real estate loan assuming that your undertaking is presumed to be profitable, you have sufficient money to use for the downpayment, you have proven yourself able in real estate in the past, you have sizeable equity in the property or home or you have a clear plan to repay the loan. And having fast closings of just two weeks, private real estate mortgages in Lynn may very well be the perfect alternative for real estate investors.

Most often, customers rely on Lynn private mortgage lenders to finance their real estate ventures when:

1. They wish to update or fix up the property so they can market it at a much higher price point or to charge higher monthly rental fees.

   Real example: one of our customers held a two-unit rental property. He had already built considerable equity available in the building and the monthly rent checks was a recurring source of income. While several remodeling work to the units could have helped him charge higher rent, a bank would definitely have turned down his mortgage request, considering that his credit score was a mere 520. Right after he got in touch with Read Rock Capital for a loan, we were happy to do a cash-out refinance at 65% of the property's assessed value.

2. They have numerous personal debts and want to consolidate them.

   Numerous unsecured debts with a range of rates are often rather overwhelming and challenging to manage. Because of this, some people make the decision to make the most of the equity in their property to combine each of their outstanding debts into a single private loan which has a single monthly payment.

3. They prefer to take advantage of their house's equity for a different home purchase.

   As an example, one of our clients located in Hawaii had a house valued in excess of a million bucks. His idea was to sell the house but it never materialized and he ultimately was forced to settle for leasing the home to someone, with the option to purchase it at a future time. The lease income made it possible to meet his existing mortgage payment, taxes and homeowner's insurance. The tenant additionally included two hundred thousand dollars for a non-refundable down payment as part of signing the three year contract. The signed agreement meant he no longer needed to be concerned with the home's future financial obligations, and so when another promising investment opportunity showed up, he found Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. The money helped him afford a different investment property and also pay off his original mortgage.

4. The balloon payment for an existing mortgage is due and they are not able to afford it.

   A person who invests in real estate and has a prior private mortgage loan and is unable to pay for the balloon payment as a result of a change of circumstances can submit an application for refinancing from another lending company. Refinancing right before the due date allows the borrower to make the due date for the balloon payment and avoid fines in connection with missing the balloon payment.

Planning to discuss your financing options with a private mortgage lender in Lynn? Complete the form or get in touch with us via phone and let's talk about the property you have in mind.