A lot of real estate investors rely upon private real estate financing to pay for a new home, or renovate or refinance one they already have. Although typical lending institutions such as banks necessitate a prolonged, drawn out application process and are likely to think twice about lending money to a self-employed borrower, private mortgage loans in Narragansett close fast and are easy to qualify for.

That's very fortunate for real estate investors considering that even a person with weak credit can apply 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 demonstrated himself competent in prior real estate investments, and he has a sensible exit strategy. Additionally, the fast closing Narragansett private real estate mortgages give you funding without delay, letting you close within 2 or 3 weeks.

Most often, borrowers talk to Narragansett private mortgage lenders to fund their real estate activities when:

1. A rehab or renovation will help to market their property at a much higher price point or charge more rent.

   By way of example, we had a customer who owned a two-family rental property. He previously built up a good amount of equity available in the asset and the rent was a routine source of income. A handful of choice home upgrades would help him increase the cost of rent, but having a poor credit score of 520, it was extremely probable that a bank would turn down his loan application. Right after he got into contact with Read Rock Capital for a mortgage, we were able to complete a cash-out refinance for 65% of the house's appraised value.

2. They would like to combine their outstanding debts into just one loan.

   A lot of people find that it's stressful to make countless payments each month. To successfully set up a more reasonable situation, some people consolidate all of their unsecured debts into just one line of credit with only one monthly payment.

3. They wish to take advantage of their home's existing equity for a different purchase.

   For example, a customer located in Hawaii owned a home valued at $1.2M. He wanted to sell the house but that did not work out and he finally was forced to be satisfied with leasing the property to an interested party, with the option to purchase it at a future time. The lease payouts made it possible to meet his existing mortgage expenses, taxes and insurance. The renter furthermore consented to pay $200,000 for a deposit for the 3-year lease. These assurances meant that he no longer had to be concerned with the home's future financial obligations, and so when a new real estate opportunity surfaced, he found Read Rock Capital and obtained a private mortgage loan at seventy percent loan to value. This not only gave him enough capital to use for a downpayment or his next home, but also made it easier for him to pay off the current mortgage.

4. The balloon payment for a prior mortgage is owed soon and they can not afford it.

   If someone is unable to make a balloon payment thanks to unforeseen causes, he can try and refinance his loan with an alternative loan company. A cash-out refinance helps you pay the balloon payment and escape consequences.

Searching for a private mortgage lender in Narragansett to fund your investment purchase? Submit the form on this page or get in touch with us via phone and let's discuss your property.