Private real estate financing can help investors pay for, fix up or refinance a property or home using a short-term mortgage from a privately owned firm or an individual. Whereas traditional lenders, for example, banks have a prolonged, time consuming application process and in all likelihood will hesitate to lend money to a self-employed applicant, private mortgage loans in Twin Falls close fast and are easy to qualify for.

It means that even if you do not have a great credit score, there is still a strong likelihood of receiving private money for a real estate loan provided that your project is presumed to be profitable, you have adequate money to set aside for the downpayment, you have demonstrated yourself competent in prior real estate investments, you have significant equity contained in the home or you can show an intelligible plan to pay back the balance of the loan. Combined with fast closings of only fourteen days, private real estate mortgages in Twin Falls may very well be the perfect alternative for ambitious real estate investors.

Often, customers confer with Twin Falls private mortgage lenders to fund their real estate activities when:

1. A remodeling job or renovation can help to offer the house for a higher price point or get more rent.

   To illustrate, one of our borrowers owned a twin-home / duplex. He'd already built up a good amount of equity available in the house and the rent payments was a recurring income source. Though a few improvements to the property may have enabled him to collect more rent, a bank would have turned down the loan application, due to the fact his credit score was down at 520. So the client contacted Read Rock Capital (Read Rock Capital) to execute a cash-out refinance which in turn got him a loan for 65% of the property's value.

2. They would like to combine their personal debts.

   Countless unsecured debts with different lending rates are very overwhelming and challenging to keep track of. To set up a more manageable situation, people consolidate all of their outstanding debts into one single mortgage loan with just one monthly payment.

3. They prefer to use their home's existing equity for a different home purchase.

   By way of example, one of our past borrowers located in Hawaii had a place valued in excess of a million bucks. When he failed to procure a buyer for the property, he inked a lease-option-to-buy deal with an interested party. The rent checks were more than enough to pay for the cost of his ongoing mortgage bill, property taxes and homeowner's insurance obligations. He also received a $200k non-refundable advance payment for the 3-year lease agreement. These assurances meant that he no longer had to concern himself with the property's ongoing financial obligations, and thus, when another promising real estate opportunity came up, he reached out to Read Rock Capital and got a private mortgage loan at 70% LTV. This let him pay an advance on the deposit for his next investment, and furthermore helped with his present mortgage.

4. The balloon payment for a prior mortgage is owed soon and they can't pay it.

   A real estate investor who has a previous private loan and cannot afford the balloon payment on account of a change in circumstances can submit an application for refinancing from a different loan company. A refinance will help him avoid missing the due date for the balloon payment and steer clear of any fees and penalties.

Intending to discuss your mortgage options with a private mortgage lender in Twin Falls? Complete the contact form on this page or give us a call to discuss your property.