Private real estate financing means finding a short-term mortgage loan via a privately owned company or individual person in order to purchase, carry out improvements on or refinance a home or property. In contrast to loans from banks, Lee’s Summit private mortgage loans close fast, are easy to qualify for and obtainable by self-employed applicants.

Thus, while you might have poor credit, having a promising real estate opportunity, a considerable downpayment, prior experience in real estate, and a clear exit strategy are much more relevant in terms of qualifying for private money for a real estate loan. And with fast closings of just two weeks, private real estate mortgages in Lee’s Summit are a perfect solution for ambitious real estate investors.

Normally, investors get in touch with a private mortgage lender in Lee’s Summit when:

1. A remodeling job or renovation will make it possible to sell the home for a much higher price or fetch additional rent.

   By way of example, we had this client who owned a 2-unit rental. He'd already built adequate equity available in the building and the monthly rent checks was a routine revenue stream. He sought to complete some renovation to the property to be able to maintain high rents, but a low credit score of 520 meant that a bank would doubtless turn down his mortgage application. Hence, the customer got in contact with Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that provided him a loan for 65% of the duplex's value.

2. They would like to merge all their outstanding debts into one single loan.

   Most people find that it's stressful to deal with multiple payments each month. Due to this, many individuals borrow against their home's equity to consolidate each of their financial debts into just one mortgage loan.

3. They prefer to employ the existing equity in one home and purchase a different one.

   As an example, one of our past clients located in Hawaii had a house appraised at over one million bucks. His plans to sell the house did not happen and he finally had to settle for leasing the home to someone, with the option to buy at a future time. The money that stemmed from the rental payments covered his monthly mortgage payment, home owner's insurance, and property taxes. Additionally, he was given a $200,000 non-refundable down payment for the three year lease. Using these sureties to take care of the home's expenses on a regular basis, he called Read Rock Capital to obtain a 70% loan-to-value private mortgage loan to aid in his upcoming real estate investment. This means that he was able to make his deposit for his next property, and also help with his current mortgage.

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

   A person who invests in real estate and has a previous private loan and is not able to afford the balloon payment on account of a change in circumstances can fill out an application for refinancing from a different lender. A refinance can help the person hit the cut-off date for the balloon payment and prevent any penalties.

Interested in discussing your investment plans with a private mortgage lender in Lee’s Summit? Enter your info into the form on this page or call us and let's discuss your project.