Private real estate financing can help investors purchase, renovate or refinance a property using a short-term loan from a private business or an individual. Philadelphia private mortgage loans have many advantages — they are fast closing, easy qualifying and are also offered to self-employed borrowers.

Thus, in case you don't have great credit, having a real estate opportunity showing promise for profits, a significant downpayment, past real estate experience, and a clear-cut exit strategy are far more crucial in regards to being approved for private money for a real estate loan. What's more, Philadelphia private real estate mortgages close fast to supply you with financing without delay, helping you close a deal within a few short weeks.

Typically, people get in touch with a private mortgage lender in Philadelphia when:

1. They want to find funds to fix up a home and property and offer it for sale at a much higher price or to up the lease amount for tenants.

   For example, there was a borrower who owned a 2-family rental property. He already had a good deal of equity in the house and the rent delivered steady revenue. A few choice home enhancements would undoubtedly allow him to raise his rental prices, but having a below average credit score of 520, it was highly likely that a bank would turn down his mortgage application. Right after he approached Read Rock Capital to get a mortgage, we were pleased to complete a cash-out refinance at 65% of the home's appraised value.

2. They're stuck with numerous outstanding debts and desire to combine them.

   Many of us know how stressful it is to deal with countless payments on a monthly basis. In order to make the situation more manageable, some people merge each of their financial debts into one single line of credit with one payment per month.

3. They wish to release the existing equity in one home or property and use it to invest in a different one.

   One of Island View's customers located in Hawaii owned a home worth over $1,000,000. His plans to sell the house never materialized and he eventually was forced to be satisfied with leasing the place, with an option to purchase it down the road. The rental agreement payments helped him meet his current mortgage, property taxes and homeowner's insurance. The tenant furthermore agreed to pay him 200k for a deposit for a 3-year lease contract. Having these assurances to handle the property's monthly payments on an ongoing basis, he called Read Rock Capital to get a 70% loan-to-value private mortgage loan for his subsequent real estate investment. This not only gave him plenty of money to put towards a down payment on his next home, but additionally helped him repay the existing mortgage.

4. They already have an existing mortgage and are unable to afford the pending balloon payment.

   A person who invests in real estate and has a prior private mortgage and isn't able to afford the balloon payment on account of a change in circumstances can fill out an application for refinancing from another loan company. A refinance will help him hit the cut-off date for the balloon payment and avoid fines.

Intending to discuss your investment alternatives with a private mortgage lender in Philadelphia? Enter your info into the contact form on this page or get in touch with us via phone to talk about your property.