Private real estate financing means finding a short-term mortgage loan from a private business or individual with the intention to purchase, perform upgrades on or refinance a property or home. North Liberty private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are open to self-employed applicants.

This means that even if your credit score just went through the wringer, you still have a high probability of qualifying for private money for a real estate loan assuming that your investment is deemed to be profitable, you have enough money to put towards the down payment, you have demonstrated yourself able in real estate in the past, you have substantial equity in the property or home or you have a clear plan to pay off the loan. And having fast closings of only two weeks, private real estate mortgages in North Liberty are a perfect solution for real estate investors.

Most individuals depend on North Liberty private mortgage lenders when:

1. They want capital to fix a home and property and sell it at a much higher price or to up the lease amount for renters.

   For example, we had this client with a two-family rental. He already had plenty of equity available in the house and the rent generated steady revenue. Though some enhancements to the property would have helped him command higher rent, a bank would likely have turned down the loan request, given that he had a credit score of only 520. Hence, the client got in contact with Read Rock Capital (Read Rock Capital) to do a cash-out refinance that got him financing for 65% of the home's appraised value.

2. They're saddled with numerous outstanding debts and prefer to combine them.

   Many people find that it's stressful to deal with multiple payments every month. Due to this, many individuals get a loan from a property's equity to merge all of their outstanding debts into just one loan.

3. They would like to allocate the equity in one house and use it to buy another one.

   One of our borrowers in Hawaii had a property worth $1.2 million. When he failed to procure a buyer for his house, he agreed to a lease-option-to-buy contract with an interested party. The rent checks were adequate to handle his monthly mortgage payment, taxes and cost of insurance. In addition, he was given a two hundred thousand dollars non-refundable downpayment for the 3-year lease agreement. Having these sureties to cover the home's financial obligations on a regular basis, he called Read Rock Capital to get a 70% LTV private mortgage loan to aid in his upcoming real estate investment. Meaning that he was able to make a down payment for the new property, and also help with his existing mortgage.

4. The balloon payment for a preexisting mortgage is owed soon and they cannot pay it.

   A real estate investor who already has an existing private mortgage and is not able to afford the balloon payment because of a change of circumstances can apply for refinancing from a new company. Refinancing prior to the term date enables you to make the deadline for the balloon payment and avert any penalty charges associated with failing to make the balloon payment.

Hoping to make contact with a private mortgage lender in North Liberty speak about financing options for your next project? Fill out the contact form or give us a call to talk about your property.