Private Real Estate Mortgages in Salem

Private real estate financing helps investors pay for, fix up or refinance a property or home using a short-term loan from a privately owned business or an individual. Although typical lenders such as banks will require a prolonged, drawn out application process and are more than likely to hesitate to lend money to a self-employed client, private mortgage loans in Salem close fast and are easy qualifying.

Which means that even if your credit score just went through the wringer, there is still a strong likelihood of qualifying for private money for a real estate loan assuming that your undertaking is regarded as profitable, you have enough capital available for the downpayment, you have proven yourself capable in earlier real estate ventures, you have significant equity in the property or you have a clear plan to pay back the balance of the loan. Combined with fast closings of just 2 weeks, private real estate mortgages in Salem may very well be the perfect solution for real estate investors.

Often, borrowers confer with Salem private mortgage lenders to finance their projects when:

  1. A remodeling job or restoration can help them sell the home for a higher price point or bring in more rent.

    For instance, there was this borrower who owned a two-family rental property. At the time, he had a lot of equity in the building and the rent checks generated steady cash flow. He sought to perform some renovation to the property in order to keep his rents high, but a below average credit score of 520 meant that a bank would doubtless turn down his mortgage request. Hence, the customer called Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which in turn provided him financing for 65% of the duplex's value.

  2. They've got numerous debts and wish to consolidate them.

    Many of us find that it's stressful to manage multiple payments each month. Because of this, numerous people opt to utilize the equity available in their property to consolidate all their unsecured debts into one loan having a lone monthly payment.

  3. They wish to utilize their home's existing equity for some other real estate deal.

    By way of example, one of Island View's previous customers located in Hawaii had a home appraised at over one million bucks. Since it was difficult for him to get a buyer for the place, he had found a person who was wanting to lease it having the option to buy. The rental agreement payouts made it possible to meet his current mortgage, property taxes and homeowner's insurance. In addition, he received a $200,000 non-refundable downpayment for the 3-year lease agreement. Having these sureties to pay for the property's foreseeable financial obligations, he ran across another great investment opportunity and contacted Read Rock Capital for a private mortgage loan close to seventy percent of the home's appraised value. This gave him more than enough money to use for a downpayment on his next property, but also made it easier for him to pay off the current mortgage.

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

    If someone is not able to make a balloon payment thanks to unforeseen factors, he can try and refinance his loan with a new loan company. Refinancing right before the term date enables you to make the due date for the balloon payment and avoid fees and penalties associated with missing the balloon payment.

In search of a private mortgage lender in Salem to help you afford your investment purchase? Complete the contact form or get in touch with us via phone to discuss your property or properties.

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Investment property loans only please, no primary residences at this time.