Private real estate financing involves getting a short-term mortgage loan via a privately owned business or individual with the intention to purchase, perform improvements on or refinance a property. Contrary to bank loans, Lexington private mortgage loans close fast, are easy to qualify for and obtainable by self-employed customers.

That's fantastic news for investors considering that even somebody with weak credit can obtain a private money for a real estate loan as long as he has a promising project, he has enough money for a downpayment, he has proven himself competent in the real estate market, and can show a plan for an exit strategy. What's more, Lexington private real estate mortgages close fast to ensure that you get financing without delay, letting you close a deal within a few short weeks.

Most borrowers depend on Lexington private mortgage lenders when:

1. A rehab or renovation will make it possible to market their property for a much higher price or charge additional rent.

   One example is a client who held a two-unit rental. He already retained a good deal of equity available in the building and the rent checks delivered steady revenue. He desired to do some improvements to the place in order to maintain high rents, but a below average credit score of 520 meant a bank would undoubtedly turn down the loan request. So the borrower got into contact with Read Rock Capital (Read Rock Capital) to do a cash-out refinance which in turn gave him financing for 65% of the property's valuation.

2. They have numerous personal debts and would like to consolidate them.

   A lot of people find it stressful to manage numerous payments on a monthly basis. For this reason, some people decide to make the most of the equity in their house to merge each of their outstanding debts into a single mortgage loan which has a single monthly payment.

3. They wish to take advantage of their house's equity for some other purchase.

   As an example, one of Island View's previous clients in Hawaii had a place valued in excess of a million dollars. His plans to sell the house didn't work out and he ultimately had to be satisfied with leasing the property to an interested party, with the option to purchase it at a later date. The rent checks were sufficient to handle the cost of his ongoing mortgage bill, taxes and cost of homeowner's insurance. Additionally, he received a $200,000 non-refundable downpayment for the three year lease agreement. With this collateral to take care of the property's foreseeable financial obligations, he came across a new real estate investment opportunity and got in touch with Read Rock Capital to obtain a private mortgage loan close to 70% of the home's appraised value. This allowed him to make the deposit for his next investment, and at the same time repay his existing mortgage.

4. The balloon payment for an existing mortgage is due and they are not able to afford it.

   A real estate investor who currently has an existing private loan and is not able to pay for the balloon payment on account of a change of circumstances can fill out an application for refinancing from a different lender. A refinance can help the person hit the due date for the balloon payment and steer clear of any consequences.

Looking to discuss loan alternatives with a private mortgage lender in Lexington? Submit the form or get in touch with us via phone and let's talk about your project.