Private real estate financing can help investors buy, renovate or refinance a home or property using a short-term mortgage from a privately owned firm or an individual. Auburn private mortgage loans have many advantages — they are fast closing, easy qualifying and additionally, are open to self-employed applicants.

That's why, in case you don't have good credit, having a promising opportunity, a sizeable downpayment, previous real estate experience, and a clear-cut exit strategy are more important when being qualified for private money for a real estate loan. And having fast closings of just 2 weeks, private real estate mortgages in Auburn may very well be the ideal solution for serious real estate investors.

Most borrowers use Auburn private mortgage lenders when:

1. A rehab or update can help them offer the home at a much higher price or fetch significantly more rent.

   By way of example, we had a customer who owned a 2-unit rental. He had an abundance of equity in the building and the rent checks brought in regular income each month. Some choice home improvements would allow him to bump up his rents, but having a lower credit score of 520, it was extremely certain that a bank would turn down the mortgage application. And so he came to Read Rock Capital to get a cash-out refinance and received financing at 65% LTV.

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

   Numerous outstanding debts with varying rates are too much to handle and challenging to keep track of. To make the situation more reasonable, people combine all their financial debts into only one line of credit with just one monthly payment.

3. They would like to allocate the existing equity in one home or property and use it to acquire a different one.

   One of Island View's borrowers located in Hawaii owned a residence worth $1.2 million. Though it was tough for him to find an interested party for the home, he had found a person who was willing to lease it having the option to purchase it. The lease payments helped him meet his existing mortgage payment, taxes and insurance. Additionally, he was given a two hundred thousand dollars non-refundable advance payment for the three year lease. These sureties meant that he no longer had to be concerned about the home's future financial obligations, so when another promising investment opportunity showed up, he reached out to Read Rock Capital and received a private mortgage loan at 70% loan to value. Meaning that he could make his deposit for the new property, and also repay his current mortgage.

4. They have an existing private loan and can't pay the looming balloon payment.

   If someone can't pay a balloon payment as a result of unanticipated causes, he can try and refinance his loan with an alternative mortgage company. A refinance can help him hit the due date for the balloon payment and steer clear of any penalties.

Hoping to make contact with a private mortgage lender in Auburn to talk about funding options for your upcoming project? Complete the contact form on this page or call us to talk about your property.