Numerous real estate investors depend on private real estate financing to acquire a new property, or update or refinance an existing one. While traditional lenders, for example, banks will require an extended, drawn out application process and are more than likely to be reluctant to lend money to a self-employed client, private mortgage loans in Colorado Springs close fast and are easy qualifying.

So while it's possible you don't have very good credit, having a real estate opportunity showing good potential, a sizeable down payment, previous real estate experience, and a well-defined exit strategy are much more relevant when being eligible for private money for a real estate loan. Additionally, Colorado Springs private real estate mortgages close fast to ensure that you get financing without delay, helping you close on a deal within two to three weeks.

Usually, customers get in contact with a private mortgage lender in Colorado Springs when:

1. They're looking for money to fix up a property or home and market it for a much higher price point or to up the lease amount for renters.

   E.g. one of our customers owned a twin-home / duplex. He held plenty of equity in the building and the rent payments generated regular income each month. A few select home enhancements would allow him to boost the cost of rent, but because of a low credit score of 520, it was very likely that a bank would turn down the loan application. Shortly after he got in contact with Read Rock Capital to get a loan, we were happy to complete a cash-out refinance for 65% of the house's market value.

2. They need to merge each of their outstanding debts into just one payment.

   Many of us find that it's stressful to make countless payments each month. On that basis, lots of people get a loan from a property's equity to merge all their financial debts into one single loan.

3. They want to take advantage of their home's existing equity for a different real estate deal.

   As an illustration, a homeowner in Hawaii owned a property appraised at $1,200,000. When he was unable to secure a buyer for his home, he inked a lease-option-to-buy deal with an interested party. The revenue that came from the rental payments paid for his ongoing mortgage bill, insurance, and property taxes. The tenant also put two hundred thousand dollars towards a non-refundable down payment as part of signing the 3-year agreement. With these assurances to cover the house's foreseeable expenses, he came across a new investment opportunity and approached Read Rock Capital for a private mortgage loan around seventy percent of the home's value. This means that he could make a down payment for the new property, and also pay down his current mortgage.

4. They have a previous mortgage and are unable to afford the pending balloon payment.

   If an unanticipated event prevents a borrower from hitting his balloon payment due date, he could approach a different lender to refinance. A cash-out refinance can help you pay the balloon payment and evade penalty.

Looking to discuss loan programs with a private mortgage lender in Colorado Springs? Fill out the form on this page or call us and let's talk about your project.