Private real estate financing means finding a short-term loan via a private firm or individual person as a way to purchase, perform improvements on or refinance a property. Unlike bank loans, New Brunswick private mortgage loans are fast closing, have minimal eligibility requirements and accessible to self-employed individuals.

That's why, in case you have bad credit, having a promising opportunity, a substantial downpayment, prior real estate experience, and a clear-cut exit strategy are much more important when being qualified for private money for a real estate loan. And with fast closings of just two weeks, private real estate mortgages in New Brunswick are a perfect alternative for serious real estate investors.

Usually, clients get a hold of a private mortgage lender in New Brunswick when:

1. A rehab or renovation can help to sell their property for a higher price point or charge additional rent.

   As an example, one of our customers had a twin-home / duplex. At the time, he retained a good deal of equity in the property and the rent delivered steady revenue. He desired to do some improvements to the place to help maintain high rents, but a lower credit score of 520 meant a bank would turn down the loan request. Shortly after he approached Read Rock Capital to obtain a loan, we were able to complete a cash-out refinance at 65% of the duplex's market value.

2. They have numerous debts and desire to combine them.

   Multiple outstanding debts with various rates are often too much to handle and hard to manage. For this reason, numerous people make the decision to make use of the equity available in their house to merge all of their financial debts into a single mortgage having a lone monthly payment.

3. They would like to make use of the equity in a current home and property to do a different real estate investment.

   For instance, one of our previous customers located in Hawaii had a property appraised above a million bucks. When he failed to secure a buyer for his house, he signed a lease-option-to-buy arrangement with somebody. The rental agreement payments helped him meet his current mortgage, taxes and homeowner's insurance. The person furthermore consented to pay $200,000 in the form of a deposit for a three year contract. Having these sureties to cover the house's foreseeable financial obligations, he ran across another great real estate investment opportunity and approached Read Rock Capital for a private mortgage loan around 70% of the home's estimated value. This means that he could make his downpayment for his next property, and also pay down his existing mortgage.

4. They already have a mortgage and are unable to afford the looming balloon payment.

   A real estate investor who already has an existing private loan and isn't able to pay for the balloon payment on account of a change in circumstances can apply for refinancing from a new lender. Refinancing ahead of the due date helps you to meet the due date for the balloon payment and stay clear of penalties related to failing to pay the balloon payment.

Are you searching for a private mortgage lender in New Brunswick to fund your investment purchase? Enter your info into the contact form or call us and let's talk about the property or properties you have in mind.