Many real estate investors rely upon private real estate financing to buy a new property, or update or refinance one they already own. West Palm Beach private mortgage loans have many advantages — they close fast, are easy to qualify for and are also offered to self-employed individuals.

It means that even if your credit score recently went through the wringer, there is still a high likelihood of obtaining private money for a real estate loan if your real estate project is regarded as profitable, you have ample money to put towards the downpayment, you have demonstrated yourself competent in past real estate projects, you have substantial equity contained in the property or you can show a well-defined plan to pay back the loan. Furthermore, if you need a fast closing, there are few options better than West Palm Beach private real estate mortgages.

Most real estate professionals work with West Palm Beach private mortgage lenders when:

1. They want to update or repair the property or home so they can market it at a higher price point or to bring in higher rents.

   By way of example, we had a borrower with a two-unit rental. He had plenty of equity in the property and the rent payments generated regular income each month. While a few upgrades to the property would have helped him command more rent, a bank would undoubtedly have turned down his loan application, due to the fact he had a credit score of merely 520. Consequently, the borrower called Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that got him financing for 65% of the property's assessed value.

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

   Many of us know how stressful it is to make multiple payments each month. For this reason, many people make the decision to make the most of the equity in their property to combine each of their financial debts into just one mortgage loan having a lone payment per month.

3. They would like to utilize their property's equity for an additional real estate deal.

   By way of example, one of Island View's customers located in Hawaii had a home appraised at over one million dollars. He wanted to sell the house but that did not work out and he ultimately was forced to be content with leasing the property to an interested party, with the option to purchase it at a future time. The lease payouts served to meet his current mortgage expenses, property taxes and homeowner's insurance. The tenant also agreed to pay him 200k for a down payment for a 3 year lease contract. Having this collateral to cover the home's foreseeable bills, he ran across another great investment opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan close to 70% of the property's estimated value. This not only gave him enough money to use for a downpayment on his next property, but additionally made it easier for him to repay the existing mortgage.

4. They have an existing mortgage and are not able to afford the looming balloon payment.

   A real estate investor who has a previous private mortgage loan and isn't able to afford the balloon payment caused by a change in circumstances can apply for refinancing from an alternative loan company. A cash-out refinance helps you pay the balloon payment and escape penalty.

Looking to discuss your financing plans with a private mortgage lender in West Palm Beach? Submit the contact form or get in touch with us via phone and let's discuss your project.