Private real estate financing means obtaining a short-term loan from a privately owned firm or individual person to be able to buy, perform upgrades on or refinance a property. Unlike bank loans, Prichard private mortgage loans are fast closing, have minimal eligibility requirements and offered to self-employed borrowers.

That's fantastic news for investors because even anyone with weak credit can obtain a private money for a real estate loan as long as he has a promising deal, he has adequate cash for a down payment, he has proven himself competent in real estate, and he can show a plan for an exit strategy. What's more, the fast closing Prichard private real estate mortgages supply you with funding without delay, allowing you to close on a deal within weeks.

Most borrowers use Prichard private mortgage lenders when:

1. A rehab or update can help to sell their property for a much higher price or charge extra rent.

   As an illustration, one of our applicants owned a 2-unit rental. He'd already built up ample equity in the asset and the rent was a recurring income source. He sought to complete some upgrades to the units so that he could keep his rents high, but a lower credit score of 520 meant a bank would doubtless turn down the loan application. Thus, he turned to Read Rock Capital to do a cash-out refinance and received financing at 65% LTV.

2. They need to combine their personal debts.

   The majority of people find it stressful to make countless payments each month. As a result, some individuals do a loan against their home's equity to combine their financial debts into one single loan payment.

3. They wish to make use of the equity within their current home to do an additional real estate investment.

   One of our customers in Hawaii owned a property worth over $1,000,000. His plans to sell the house did not work out and he eventually had to be satisfied with leasing the house, with the option to purchase it at a future time. The amount of rent was sufficient to handle the cost of his monthly mortgage bill, property taxes and insurance payments. He also was given a $200k non-refundable down payment for the three year agreement. Having these sureties to handle the home's bills on a regular basis, he approached Read Rock Capital for a seventy percent LTV private mortgage loan for his next real estate investment. The financing helped him put enough money towards his next investment property and in addition, pay down his original mortgage.

4. The balloon payment for their current private loan is owed soon and they can't handle it.

   If an unforeseen event prevents a borrower from making his balloon payment due date, he can approach a different mortgage lender to refinance. A cash-out refinance will help the person pay the balloon payment and escape penalty.

Hoping to discuss loan options with a private mortgage lender in Prichard? Fill out the contact form on this page or get in touch with us via phone to talk about the property or properties you have in mind.