Private real estate financing entails getting a short-term mortgage from a private firm or individual in order to purchase, perform improvements on or refinance a home. In contrast to loans from banks, Ardmore private mortgage loans close fast, are easy to qualify for and open to self-employed applicants.

That's very good news for investors considering that even someone with lousy credit can obtain a private money for a real estate loan so long as he has a project that shows promise, he has enough cash for a downpayment, he has shown himself able in past real estate investments, and can show a plan for an exit strategy. Furthermore, if you would like a fast closing, there are few options better than Ardmore private real estate mortgages.

Most real estate professionals depend on Ardmore private mortgage lenders when:

1. A rehab or update will help them sell the home for a higher price or fetch more rent.

   For instance, there was a client who owned a 2-unit rental. He held enough equity available in the building and the rent generated regular income each month. He wanted to do some improvements to the units to help keep his rents high, but a below average credit score of 520 meant a bank would turn down his loan request. After he got into contact with Read Rock Capital to obtain financing, we were able to complete a cash-out refinance at 65% of the home's market value.

2. They're stuck with multiple unsecured debts and would like to consolidate them.

   Multiple unsecured debts with various interest rates are often too much to handle and tough to manage. On that basis, some individuals borrow from their home's equity to combine all of their outstanding debts into a single loan payment.

3. They prefer to take advantage of their home's equity for a different home purchase.

   As one example, a homeowner in Hawaii owned a home valued at $1,200,000. He wanted to sell the house but that didn't work out and he eventually was forced to be satisfied with leasing the property to someone, with the option to buy at a future time. The rental agreement payouts served to meet his existing mortgage expenses, taxes and homeowner's insurance. The person also consented to pay two hundred thousand dollars as an advance payment for a 3-year lease contract. The signed agreement meant that he no longer had to worry about the property's ongoing expenses, and as a result, when another great investment opportunity surfaced, he found Read Rock Capital and obtained a private mortgage loan at seventy percent LTV. Meaning that he was able to make his down payment for his next investment, and also pay down his current mortgage.

4. They already have an existing loan and are unable to afford the looming balloon payment.

   A real estate investor who has a previous private mortgage and is unable to afford the balloon payment on account of a change of circumstances can submit an application for refinancing from a different lender. Refinancing ahead of the due date helps you to make the due date for the balloon payment and avoid penalties related to failing to make the balloon payment.

Wanting to connect with a private mortgage lender in Ardmore to discuss funding options for your next project? Submit the contact form or call us and let's talk about the property you have in mind.