Private real estate financing involves getting a short-term mortgage through a private company or individual in order to purchase, perform improvements on or refinance a home. Aberdeen private mortgage loans have many advantages — they are fast closing, easy qualifying and are also open to self-employed borrowers.

This is fantastic news for investors considering that even someone with lousy credit can qualify for private money for a real estate loan given that he has a promising deal, he has sufficient cash for a down payment, he has demonstrated himself competent in prior real estate projects, and can show a preplanned exit strategy. And having fast closings of just 14 days, private real estate mortgages in Aberdeen may very well be the right solution for serious real estate investors.

Most individuals speak with Aberdeen private mortgage lenders when:

1. They wish to renovate or repair the property or home to allow them to sell it at a higher price or to fetch higher rents.

   Real example: one of our borrowers held a 2-unit rental property. He had already built ample equity in the property and the monthly rent checks was a regular income source. A few select home renovations would undoubtedly allow him to raise the cost of rent, but since he had a below average credit score of 520, it was highly probable that a bank would turn down his mortgage request. Accordingly, he turned to Read Rock Capital for a cash-out refinance and received a loan at 65% LTV.

2. They want to combine their debts.

   Most people find that it's stressful to make countless payments each month. Due to this, many individuals borrow from a property's equity to consolidate all their outstanding debts into one loan.

3. They would like to utilize their home's existing equity for a different home purchase.

   To provide an example, a customer in Hawaii had a home appraised at $1,200,000. He wanted to sell the house but that did not happen and he ultimately was forced to settle for leasing the house, with an option to buy down the road. The funds that stemmed from the lease covered his monthly mortgage bill, home owner's insurance, and taxes. The tenant also agreed to pay him two hundred thousand dollars in the form of a deposit for a three year contract. With the help of this collateral to pay for the home's foreseeable bills, he ran across another great real estate investment opportunity and contacted Read Rock Capital for a private mortgage loan nearly 70% of the home's value. This allowed him to pay an advance on the deposit for the new investment, and furthermore helped with his existing mortgage.

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

   A person who invests in real estate and has a prior private mortgage and cannot afford the balloon payment thanks to a change of circumstances can fill out an application for refinancing from an alternative lender. A cash-out refinance helps the person pay the balloon payment and escape penalty.

Wanting to meet a private mortgage lender in Aberdeen speak about financing options for your next real estate investment? Fill out the contact form on this page or get in touch with us via phone to discuss your property.