Private real estate financing helps investors buy, remodel or refinance a home utilizing a short-term loan from a privately owned company or an individual. While traditional lending institutions such as banks require a lengthy, drawn out application process and are more than likely to be reluctant to offer money to a self-employed client, private mortgage loans in close fast and have minimal eligibility criteria.

It means that whether or not you have a good credit score, there is still a high likelihood of qualifying for private money for a real estate loan assuming that your real estate project is deemed to be profitable, you have ample money reserved for the down payment, you have shown yourself able in past real estate ventures, you have considerable equity contained in the property or home or you have a legitimate plan to repay the loan. And having fast closings of fourteen days, private real estate mortgages in Ketchikan may very well be the right choice for serious real estate investors.

Primarily, clients rely upon Ketchikan private mortgage lenders to fund their real estate ventures when:

1. They need to remodel or fix up the house to enable them to sell it at an increased price point or to get higher rents.

   As an illustration, one of our clients held a 2-family rental. He held plenty of equity in the property and the rent generated routine income each month. Some choice home enhancements would allow him to raise the cost of rent, but with a below average credit score of 520, it was highly likely for a bank to turn down the loan application. Shortly after he got into contact with Read Rock Capital to get financing, we were able to complete a cash-out refinance for 65% of the duplex's assessed value.

2. They would like to consolidate unpaid debts.

   Most people find it stressful to make countless payments every month. To set up a more reasonable situation, some people merge their outstanding debts into one single line of credit with one monthly payment.

3. They wish to utilize their home's equity for some other purchase.

   For example, a borrower in Hawaii had a house appraised at $1.2M. While it was difficult for him to secure a purchaser for the place, he had found somebody who was willing to lease it with the option to purchase it. The lease payouts made it possible to meet his current mortgage payment, property taxes and homeowner's insurance. The tenant also agreed to pay him $200,000 in the form of a deposit for the 3 year contract. Using these sureties to take care of the property's expenses on an ongoing basis, he called Read Rock Capital to get a 70% loan-to-value private mortgage loan for his upcoming investment. This let him make the deposit for his next property, and furthermore repay his present mortgage.

4. The balloon payment for an existing mortgage is due and they are unable to pay it.

   If an unexpected mishap hinders someone from making his balloon payment deadline, he can contact a new mortgage company to refinance. A cash-out refinance will help you complete the balloon payment and evade consequences.

Hoping to find a private mortgage lender in Ketchikan to help you afford your investment purchase? Fill out the form on this page or call us and let's talk about your project.