Private real estate financing entails obtaining a short-term mortgage loan through a private firm or individual person as a way to purchase, perform upgrades on or refinance a home or property. Unlike bank loans, Rock Springs private mortgage loans are fast closing, have minimal eligibility criteria and accessible to self-employed borrowers.

It means that even if your credit score recently went through the wringer, you still have a good chance of receiving private money for a real estate loan assuming that your undertaking is deemed to be profitable, you have ample money to set aside for the downpayment, you have demonstrated yourself competent in real estate previously, you have substantial equity in the home or property or you can show a legitimate plan to repay the loan. In addition to this, if you are looking for a fast closing, you will not see many options better than Rock Springs private real estate mortgages.

Most often, customers rely on Rock Springs private mortgage lenders to finance their real estate activities when:

1. They would like to remodel or repair the property so that they can offer it at an increased price or to get higher rents.

   Real example: one of our clients owned a two-unit rental. At the time, he retained a significant amount of equity in the building and the rent checks delivered steady cash flow. Though several remodeling work to the place might have helped him ask for more rent, a bank would undoubtedly have turned down the mortgage request, given that he had a credit score of down at 520. When he approached Read Rock Capital to obtain a mortgage, we were happy to do a cash-out refinance for 65% of the home's appraised value.

2. They want to combine debts.

   Many people find it stressful to deal with multiple payments each and every month. Due to this fact, many individuals do a loan from their home equity to merge all of their outstanding debts into one loan.

3. They would like to make use of the equity available in an existing property to work on a different project.

   To provide an example, a borrower located in Hawaii had a home appraised at $1.2M. While it was tough for him to get a buyer for the property, he had identified a person who was open to lease it with the option to purchase it. The amount of rent was adequate to take care of his monthly mortgage payment, property taxes and cost of homeowner's insurance. The tenant furthermore went ahead and paid him 200k in the form of a downpayment for the three year lease agreement. With this collateral to take care of the home's foreseeable financial obligations, he stumbled on a new real estate investment opportunity and approached Read Rock Capital to obtain a private mortgage loan around seventy percent of the property's estimated value. Meaning that he could make the downpayment for his next investment, and also help with his existing mortgage.

4. The balloon payment for an existing loan is due and they are unable to handle it.

   A person who invests in real estate and has a previous private mortgage and isn't able to afford the balloon payment thanks to a change of circumstances can submit an application for refinancing from a different company. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and steer clear of any consequences.

Hoping to discuss your investment options with a private mortgage lender in Rock Springs? Complete the contact form on this page or call us and let's discuss your project.