Private real estate financing involves obtaining a short-term mortgage through a private business or individual to be able to purchase, perform upgrades on or refinance a home. Aztec private mortgage loans have many advantages — they are fast closing, have minimal eligibility criteria and are also available to self-employed applicants.

That's great news for real estate investors because somebody with weak credit can opt for private money for a real estate loan as long as he has a project that shows strong potential, he has adequate money for a downpayment, he has shown himself capable in real estate, and can show a sensible exit strategy. And having fast closings of only two weeks, private real estate mortgages in Aztec are an ideal solution for serious real estate investors.

Most individuals work with Aztec private mortgage lenders when:

1. A rehab or restoration can allow them to market their property at a much higher price or ask for extra rent.

   As an illustration, one of our borrowers owned a 2-unit rental. He had plenty of equity in the building and the rent checks generated routine monthly income. Some choice home enhancements would undoubtedly help him raise the cost of rent, but since he had a low credit score of 520, it was extremely probable that a bank would turn down his mortgage application. After he got into contact with Read Rock Capital to get a loan, we were able to do a cash-out refinance at 65% of the property's assessed value.

2. They wish to merge all their unsecured debts into one payment.

   Multiple debts with a range of rates can be extremely overwhelming and challenging to keep tabs on. For this reason, numerous people decide to make use of the equity in their residence to merge each of their outstanding debts into one private mortgage which has a single payment per month.

3. They would like to employ the equity in one home or property and buy a different one.

   One of Island View's clients located in Hawaii owned a house worth over $1,000,000. While it was difficult for him to get an interested party for the house, he had found someone that was wanting to lease it with an option to buy. The rental agreement income helped him meet his current mortgage, property taxes and insurance. Additionally, he was given a $200k non-refundable advance payment for the 3 year contract. Having these sureties to take care of the property's foreseeable expenses, he stumbled on a new real estate opportunity and contacted Read Rock Capital to obtain a private mortgage loan close to seventy percent of the property's estimated value. Meaning that he was able to make his down payment for his next property, and also pay down his present mortgage.

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

   If a person is not able to make a balloon payment because of unexpected factors, he can try and refinance his loan with another lending company. A refinance can help him hit the cut-off date for the balloon payment and prevent any penalty charges.

In search of a private mortgage lender in Aztec to finance your investment purchase? Complete the contact form or give us a call to talk about the property you have in mind.