Private real estate financing helps investors purchase, fix up or refinance a home or property via a short-term mortgage from a privately owned business or an individual. Whereas standard lenders such as banks will require a lengthy, time consuming application process and in all likelihood will think twice about lending money to a self-employed applicant, private mortgage loans in Ann Arbor close fast and are easy to qualify for.

So in case you don't have great credit, having a promising opportunity, a substantial downpayment, prior real estate experience, and a clear exit strategy are more important in regards to being eligible for private money for a real estate loan. Additionally, Ann Arbor private real estate mortgages close fast to provide you with funding right away, helping you close a deal within 2-3 weeks.

Most real estate professionals depend on Ann Arbor private mortgage lenders when:

1. A rehab or update can allow them to market their property for a much higher price point or ask for significantly more rent.

   For example, there was a client with a two-family rental property. He already had a considerable amount of equity available in the house and the monthly rent brought in a steady income. A few select home renovations would undoubtedly help him bump up his rental prices, but because of a below average credit score of 520, it was highly certain for a bank to turn down the mortgage request. So he turned to Read Rock Capital to obtain a cash-out refinance and got financing at 65% LTV.

2. They wish to combine each of their unsecured debts into one single payment.

   Multiple outstanding debts with various interest rates can be quite overwhelming and challenging to keep tabs on. To successfully arrange a more workable situation, people combine each of their unsecured debts into a single mortgage loan with just one payment per month.

3. They wish to allocate the equity in one property and acquire another one.

   As an illustration, a borrower located in Hawaii owned a property valued at $1.2M. When he could not procure a buyer for his home, he inked a lease-option-to-buy deal with an interested party. The money that stemmed from the lease contract paid for his continuing mortgage bill, insurance, and taxes. The renter also agreed to pay two hundred thousand dollars for an advance payment for a 3 year lease agreement. Having these sureties to cover the home's financial obligations on an ongoing basis, he phoned Read Rock Capital for a 70% LTV private mortgage loan for his subsequent purchase of an investment property. The money helped him finance a new investment property and also pay off his original mortgage.

4. The balloon payment for a previous loan is due and they can't pay it.

   If a borrower is unable to pay a balloon payment due to unexpected factors, he can make an effort to refinance his loan with an alternative mortgage company. Refinancing ahead of the term date allows you to make the due date for the balloon payment and stay clear of fees and penalties related to failing to pay the balloon payment.

Hoping to find a private mortgage lender in Ann Arbor to help you afford your investment purchase? Complete the form on this page or get in touch with us via phone to talk about your property or properties.