Private real estate financing involves getting a short-term mortgage from a privately owned company or individual with the intention to buy, perform improvements on or refinance a home or property. Unlike bank loans, Allen private mortgage loans are fast closing, easy qualifying and open to self-employed individuals.

That's why, while it's possible you don't have great credit, having a promising real estate opportunity, a considerable down payment, previous experience, and a well-defined exit strategy are much more important when it comes to qualifying for private money for a real estate loan. Combined with fast closings of only 14 days, private real estate mortgages in Allen may very well be the ideal choice for serious real estate investors.

In most cases, borrowers confer with Allen private mortgage lenders to supply capital for their endeavors when:

1. They wish to renovate or repair the house so that they can offer it for sale at a higher price or to charge higher monthly rental fees.

   To illustrate, a past client owned a duplex. He already had a lot of equity in the building and the rent generated steady revenue. Although several remodeling work to the property may have helped him charge more rent, a bank would have turned down the loan application, because he had a credit score of only 520. Shortly after he contacted Read Rock Capital for a mortgage, we were pleased to do a cash-out refinance for 65% of the duplex's assessed value.

2. They wish to combine all their unsecured debts into one payment.

   Many of us know how stressful it is to deal with countless payments each and every month. To make the situation more manageable, people merge their unsecured debts into just one mortgage loan with just one monthly payment.

3. They would like to use the existing equity in their current home and property to do an additional real estate project.

   By way of example, one of our previous borrowers located in Hawaii had a house appraised at more than one million dollars. He wanted to sell the house but that never transpired and he eventually had to settle for leasing the property, with an option to buy down the road. The lease payouts made it possible to meet his existing mortgage expenses, taxes and homeowner's insurance. Additionally, he received a $200k non-refundable advance payment for the 3 year lease agreement. Having these sureties to take care of the property's foreseeable expenses, he came across a new real estate investment opportunity and contacted Read Rock Capital for a private mortgage loan close to seventy percent of the home's estimated value. This not only gave him plenty of capital to put towards a down payment or his next investment, but also made it easier for him to pay down the current mortgage.

4. They want assistance to meet the balloon payment for the current mortgage.

   A real estate investor who currently has an existing private mortgage and is unable to afford the balloon payment thanks to a change of circumstances can submit an application for refinancing from another lending company. A refinance can help the person avoid missing the due date for the balloon payment and steer clear of any penalties.

Looking to make contact with a private mortgage lender in Allen to talk about loan programs for your next investment? Submit the form on this page or give us a call to talk about your property.