Private real estate financing helps investors buy, remodel or refinance a home or property using a short-term mortgage loan from a private business or an individual. Contrary to loans from banks, Alabaster private mortgage loans close fast, are easy to qualify for and available to self-employed applicants.

Which means that regardless of whether you have a good credit score, you've still got a good chance of obtaining private money for a real estate loan as long as your real estate project is regarded as profitable, you have sufficient capital reserved for the downpayment, you have demonstrated yourself competent in the real estate market previously, you have sizeable equity in the home or you can show a well-defined plan to pay back the balance of the loan. And with fast closings of two weeks, private real estate mortgages in Alabaster are an ideal choice for serious real estate investors.

Frequently, clients pay a visit to Alabaster private mortgage lenders to loan money for their projects when:

1. They wish to renovate or repair the home and property in order to market it at an increased price or to charge higher rents.

   As an illustration, one of our clients owned a two-family rental property. He previously built up adequate equity available in the asset and the rent was a routine income source. A few select home upgrades would undoubtedly allow him to raise his rents, but because of a poor credit score of 520, it was highly certain for a bank to turn down the loan application. Consequently, the client approached Read Rock Capital (Read Rock Capital) to execute a cash-out refinance that in turn got him financing for 65% of the property's assessed value.

2. They want to merge all of their debts into a single payment.

   Multiple unsecured debts with different interest rates are very overwhelming and difficult to keep track of. To successfully make the situation more reasonable, people merge each of their unsecured debts into a single mortgage loan with one payment per month.

3. They wish to capitalize on the equity available in their current home and property to work on a different real estate project.

   One of Island View's customers in Hawaii had a home worth $1.2 million. When he was not able to find a buyer for the home, he inked a lease-option-to-buy arrangement with somebody. The rent checks were more than enough to take care of the cost of his ongoing mortgage bill, taxes and cost of homeowner's insurance. He also was given a $200,000 non-refundable deposit for the 3 year lease agreement. With these assurances to take care of the house's foreseeable financial obligations, he ran across a new real estate opportunity and got into contact with Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's value. This enabled him to pay an advance on the downpayment for the new investment, and at the same time pay down his present mortgage.

4. They want help to satisfy the balloon payment for the current private loan.

   A real estate investor who already has an existing private mortgage loan and cannot pay for the balloon payment caused by a change in circumstances can apply for refinancing from another lending company. Refinancing prior to the term date enables the borrower to meet the due date for the balloon payment and avoid fines associated with failing to make the balloon payment.

Interested in discussing your financing alternatives with a private mortgage lender in Alabaster? Fill out the contact form on this page or get in touch with us via phone to talk about your property.