Private real estate financing involves finding a short-term loan via a private firm or individual person to be able to purchase, perform improvements on or refinance a home. Whereas conventional lending institutions like banks have an extended, drawn out application process and in all likelihood will be reluctant to give money to a self-employed borrower, private mortgage loans in Mount Vernon close fast and have minimal eligibility criteria.

That's why, even if you have poor credit, having a real estate opportunity with good potential, a substantial down payment, previous experience in real estate, and a clear-cut exit strategy are a great deal more crucial in terms of being eligible for private money for a real estate loan. And with fast closings of only two weeks, private real estate mortgages in Mount Vernon are the right alternative for serious real estate investors.

Most real estate professionals depend on Mount Vernon private mortgage lenders when:

1. They wish to remodel or fix up the property or home so that they can sell it at an increased price or to ask for higher monthly rental fees.

   To illustrate, one of our customers had a twin-home / duplex. He previously built adequate equity in the asset and the monthly rent checks was a recurring source of income. Some select home upgrades would undoubtedly allow him to raise his rents, but having a lower credit score of 520, it was highly certain that a bank would turn down his mortgage request. So he reached out to Read Rock Capital to do a cash-out refinance and got financing at 65% LTV.

2. They need to consolidate their debts.

   Countless unsecured debts with different lending rates can be extremely overwhelming and challenging to keep tabs on. In order to make the situation more reasonable, people merge all of their debts into one single loan with one monthly payment.

3. They would like to take advantage of the existing equity in their existing home and property to work on another real estate investment.

   One of our borrowers in Hawaii had a residence worth $1.2 million. Though it was tough for him to secure a buyer for the property, he had found an individual who was wanting to lease it with an option to buy. The amount of rent was sufficient to take care of the cost of his ongoing mortgage bill, taxes and homeowner's insurance obligations. The tenant also gave $200k for a non-refundable downpayment when he signed the three year lease agreement. Using these sureties to take care of the home's expenses on a regular basis, he approached Read Rock Capital to obtain a 70% LTV private mortgage loan to help with his subsequent purchase of an investment property. Meaning that he was able to make the deposit for the new property, and also help with his existing mortgage.

4. They want help to meet the balloon payment for a previous loan.

   If an unforeseen mishap hinders a person from meeting his balloon payment deadline, he can contact a new lender to refinance. Refinancing right before the term date enables the borrower to meet the due date for the balloon payment and avoid consequences associated with missing the balloon payment.

Hoping to discuss your investment plans with a private mortgage lender in Mount Vernon? Complete the contact form or call us and let's talk about your property or properties.