Private real estate financing involves finding a short-term mortgage from a privately owned firm or individual person with the intention to purchase, perform upgrades on or refinance a home. Arden private mortgage loans have many advantages — they are fast closing, have minimal eligibility requirements and additionally, are open to self-employed individuals.

That's very good news for real estate investors because even an individual with bad credit can qualify for private money for a real estate loan assuming that he has a promising project, he has enough money for a down payment, he has demonstrated himself competent in past real estate investments, and he has a sensible exit strategy. What's more, Arden private real estate mortgages close fast to ensure that you get financing right away, letting you close within 2-3 weeks.

In general, clients get in touch with a private mortgage lender in Arden when:

1. A remodeling job or renovation will make it possible to sell the home for a much higher price or fetch additional rent.

   For instance, there was this borrower with a 2-family rental. He held an abundance of equity in the property and the rent checks generated regular income each month. Though a few upgrades to the units would have helped him charge higher rent, a bank would most likely have turned down the loan request, given that he had a credit score of down at 520. So he reached out to Read Rock Capital to get a cash-out refinance and received financing at 65% LTV.

2. They need to combine all of their outstanding debts into one single loan.

   Countless unsecured debts with different lending rates are very overwhelming and tough to keep track of. For this reason, numerous people opt to utilize the equity available in their house to combine their financial debts into one private loan having a single payment per month.

3. They want to use the existing equity available in a current home to work on another real estate project.

   As an example, one of our previous clients in Hawaii had a house appraised above one million bucks. Though it was difficult for him to find a buyer for the property, he had identified someone who was ready to lease it having the option to purchase it. The funds that stemmed from the lease paid for his monthly mortgage expenses, insurance, and taxes. The renter furthermore went ahead and paid him 200k for an advance payment for the 3 year lease agreement. Having these sureties to cover the home's expenses on a recurring basis, he called Read Rock Capital to obtain a seventy percent loan-to-value private mortgage loan for his upcoming purchase of an investment property. This enabled him to make the down payment for his next investment, and furthermore repay his current mortgage.

4. They have a previous private loan and can't afford the looming balloon payment.

   A person who invests in real estate and has a previous private mortgage and is not able to pay for the balloon payment thanks to a change of circumstances can apply for refinancing from a different loan company. Refinancing prior to the term date helps you to make the deadline for the balloon payment and avoid penalty charges related to failing to pay the balloon payment.

Looking to make contact with a private mortgage lender in Arden to talk about funding options for your next investment? Fill out the form or call us and let's discuss your property or properties.