Private real estate financing entails getting a short-term loan through a private business or individual person to be able to buy, perform improvements on or refinance a property. Whereas conventional lenders like banks necessitate a lengthy, drawn out application process and in all likelihood will hesitate to loan money to a self-employed individual, private mortgage loans in Alexandria close fast and have minimal eligibility criteria.

That's great for investors considering that a person with lousy credit can apply for private money for a real estate loan so long as he has a project that shows promise, he has enough money for a down payment, he has shown himself able in real estate, and he can show a good exit strategy. And with fast closings of only 2 weeks, private real estate mortgages in Alexandria may very well be the perfect choice for ambitious real estate investors.

Generally, investors get in contact with a private mortgage lender in Alexandria when:

1. A rehab or restoration will help them offer the home at a higher price point or bring in significantly more rent.

   For example, there was a customer with a two-family rental. He previously built ample equity in the house and the monthly rent checks was a routine income source. Though a few enhancements to the property would have enabled him to charge more rent, a bank would undoubtedly have turned down the loan request, given that his credit score was only 520. So the borrower got in touch with Read Rock Capital (Read Rock Capital) to complete a cash-out refinance which in turn got him financing for 65% of the home's appraised value.

2. They have numerous debts and want to combine them.

   Most people find it stressful to take care of multiple payments each month. In order to set up a more workable situation, some people combine their unsecured debts into one single line of credit with only one monthly payment.

3. They wish to utilize the existing equity within their existing house to work on an additional real estate project.

   One of Island View's customers located in Hawaii owned a property worth $1.2 million. When he was unable to find a buyer for his property, he inked a lease-option-to-buy arrangement with an interested party. The income that came from the lease paid for his ongoing mortgage expenses, home owner's insurance, and property taxes. In addition, he received a $200k non-refundable downpayment for the 3-year lease agreement. Having this collateral to take care of the home's foreseeable bills, he discovered another great real estate investment opportunity and approached Read Rock Capital to obtain a private mortgage loan nearly seventy percent of the property's appraised value. This let him make the downpayment for his next property, and also repay his current mortgage.

4. They have an existing mortgage and are not able to pay the looming balloon payment.

   If a borrower cannot make a balloon payment resulting from unexpected factors, he can seek to refinance his loan with a different mortgage lender. A cash-out refinance will help the borrower complete the balloon payment and evade fines.

Looking to make contact with a private mortgage lender in Alexandria to discuss funding options for your upcoming project? Submit the form or give us a call and let's discuss the property you have in mind.