Many real estate investors count on private real estate financing to pay for a new home, or renovate or refinance an existing one. Whereas traditional lending institutions like banks necessitate a lengthy, drawn out application process and are more than likely to think twice about lending money to a self-employed borrower, private mortgage loans in Grand Island close fast and have minimal eligibility requirements.

That is a good thing for real estate investors since even somebody with lousy credit can apply for private money for a real estate loan so long as he has a promising deal, he has sufficient cash for a down payment, he has shown himself able in prior real estate ventures, and he has a plan for an exit strategy. Combined with fast closings of two weeks, private real estate mortgages in Grand Island may very well be the ideal alternative for real estate investors.

Generally, customers seek out a private mortgage lender in Grand Island when:

1. They are in need of capital to remodel a home and sell it for a higher price or to up the lease amount for renters.

   As an illustration, one of our applicants held a two-family rental. He held enough equity in the asset and the rent generated routine income each month. A handful of select home renovations would undoubtedly allow him to raise his rents, but having a poor credit score of 520, it was highly likely that a bank would turn down the loan request. And so he came to Read Rock Capital to do a cash-out refinance and got financing at 65% LTV.

2. They have numerous unsecured debts and wish to combine them.

   Numerous outstanding debts with a range of rates can be very overwhelming and challenging to keep tabs on. On that basis, lots of people get a loan against a property's equity to combine their outstanding debts into one loan.

3. They want to allocate the equity in one property or home and use it to buy another one.

   One of our borrowers located in Hawaii owned a house worth over $1,000,000. Because it was challenging for him to get a buyer for his home, he had found someone who was ready to lease it with the option to purchase it. The lease income helped him meet his current mortgage, property taxes and homeowner's insurance. The tenant also put $200,000 in the form of a non-refundable down payment as part of signing the three year lease agreement. Having these sureties to handle the home's monthly payments on an ongoing basis, he called Read Rock Capital for a 70% loan-to-value private mortgage loan for his subsequent investment. This means that he could make the deposit for his next property, and also pay down his present mortgage.

4. They already have an existing mortgage and are not able to afford the pending balloon payment.

   If a borrower is not able to meet a balloon payment thanks to unforeseen causes, he can attempt to refinance his loan with an alternative loan provider. Refinancing right before the term date helps you to meet the due date for the balloon payment and stay clear of fines associated with failing to make the balloon payment.

Trying to find a private mortgage lender in Grand Island to fund your real estate investment? Complete the contact form on this page or give us a call and let's talk about your project.