Private real estate financing can help investors purchase, renovate or refinance a property using a short-term loan from a privately owned business or an individual. Lawrence private mortgage loans have many advantages — they close fast, are easy to qualify for and additionally, are available for self-employed applicants.

It means that even if you don't have a very good credit score, there is still a strong likelihood of qualifying for private money for a real estate loan assuming that your project is regarded as profitable, you have adequate capital reserved for the down payment, you have shown yourself competent in earlier real estate investments, you have sizeable equity contained in the home or you have a clear-cut plan to repay the loan. In addition, Lawrence private real estate mortgages close fast to supply you with funding right away, helping you close a deal within a few short weeks.

Frequently, customers ask Lawrence private mortgage lenders to loan money for their real estate ventures when:

1. They want to remodel or repair the home to allow them to market it at a much higher price or to charge higher rents.

   Real example: one of our borrowers held a 2-unit rental. He had already built considerable equity available in the building and the rent was a routine source of income. He wanted to do some modifications to the units so that he could maintain high rents, but a below average credit score of 520 meant a bank would turn down his mortgage request. When he contacted Read Rock Capital for a loan, we were happy to do a cash-out refinance at 65% of the property's market value.

2. They need to consolidate unpaid debts.

   Multiple outstanding debts with a range of interest rates can be very overwhelming and challenging to keep track of. In order to make the situation more reasonable, some people consolidate all their unsecured debts into a single mortgage loan with just one monthly payment.

3. They prefer to use their house's existing equity for some other real estate deal.

   One of Island View's customers located in Hawaii owned a house valued at over $1,000,000. His plans to sell the house did not work out and he eventually had to be content with leasing the house to someone, with the option to buy down the road. The rental agreement payouts served to meet his existing mortgage, taxes and homeowner's insurance. The tenant also gave $200k in the form of a non-refundable deposit when he signed the three year contract. Having these sureties to take care of the home's bills on an ongoing basis, he approached Read Rock Capital to get a 70% LTV private mortgage loan to help with his upcoming purchase of an investment property. This means that he could make the deposit for the new investment, and also help with his current mortgage.

4. They need assistance to satisfy the balloon payment for a previous mortgage loan.

   If a person is not able to meet a balloon payment because of unforeseen causes, he can make an effort to refinance the loan with an alternative loan provider. A refinance will help the borrower avoid missing the cut-off date for the balloon payment and prevent any fines.

Intending to discuss your investment plans with a private mortgage lender in Lawrence? Enter your info into the form on this page or give us a call and let's discuss your project.