Private real estate financing entails finding a short-term mortgage loan via a privately owned firm or individual person with the intention to purchase, carry out improvements on or refinance a property or home. In contrast to bank loans, Ocean City private mortgage loans are fast closing, have minimal eligibility requirements and accessible to self-employed borrowers.

That's why, while you might have poor credit, having a real estate opportunity showing promise for profits, a sizeable down payment, past real estate experience, and a well-defined exit strategy are much more important when it comes to being qualified for private money for a real estate loan. Combined with fast closings of just fourteen days, private real estate mortgages in Ocean City are an ideal choice for serious real estate investors.

Most individuals work with Ocean City private mortgage lenders when:

1. They want to update or repair the home and property to allow them to market it at an increased price point or to charge higher monthly rental fees.

   By way of example, we had a customer who owned a 2-unit rental property. He'd already built up a good amount of equity in the asset and the rent was a regular income source. Some select home renovations would undoubtedly allow him to increase his rental prices, but having a below average credit score of 520, it was highly likely for a bank to turn down his mortgage application. When he contacted Read Rock Capital to get a loan, we were able to complete a cash-out refinance for 65% of the duplex's appraised value.

2. They've got multiple outstanding debts and prefer to combine them.

   Multiple unsecured debts with various rates can be too much to handle and challenging to keep an eye on. As a result, numerous people get a loan from a property's equity to merge all of their unsecured debts into one manageable payment.

3. They wish to allocate their existing equity in one property and invest in a different one.

   For instance, one of our previous clients in Hawaii had a home valued at over a million dollars. When he failed to secure a buyer for his property, he agreed to a lease-option-to-buy contract with an interested party. The revenue that came from the lease took care of his regular mortgage payment, home owner's insurance, and taxes. The person furthermore consented to pay 200k in the form of a down payment for a three year agreement. Using these assurances to handle the home's expenses on a recurring basis, he contacted Read Rock Capital for a seventy percent loan-to-value private mortgage loan to help with his subsequent investment. The borrowed funds helped him cover the cost of a different investment as well as deal with his primary mortgage.

4. The balloon payment for their current private mortgage is owed soon and they cannot handle it.

   If a person cannot pay a balloon payment thanks to unforeseen causes, he can try and refinance his loan with another mortgage company. A refinance will help the borrower avoid missing the due date for the balloon payment and prevent any fees and penalties.

Looking to meet a private mortgage lender in Ocean City to discuss financing alternatives for your upcoming investment? Complete the contact form or give us a call and let's talk about the project you have in mind.